x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from ________ to _________
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Delaware
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52-1762325
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(State or Other Jurisdiction of Incorporation or Organization)
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(I.R.S. Employer Identification No.)
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One Technology Park Drive
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Westford, Massachusetts
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01886
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(Address of Principal Executive Offices)
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(Zip Code)
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Large accelerated filer
o
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Accelerated filer
x
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Non-accelerated filer
o
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Smaller reporting company
o
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Emerging growth company
o
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Class
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Outstanding at October 27, 2017
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Common Stock, $.01 par value
|
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11,007,321
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Page
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PART I: Financial Information
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PART II: Other Information
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September 30,
2017 |
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December 31,
2016 |
||||
(In thousands, except share amounts)
|
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|
||||||
Assets
|
|
|
|
|
||||
Current Assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
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$
|
90,622
|
|
|
$
|
71,487
|
|
Restricted cash (Note 1)
|
|
766
|
|
|
2,082
|
|
||
Accounts receivable, less allowances of $2,640 and $2,395 (Note 1)
|
|
94,664
|
|
|
65,963
|
|
||
Inventories (Note 1)
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|
90,450
|
|
|
54,951
|
|
||
Unbilled contract costs and fees
|
|
6,256
|
|
|
3,068
|
|
||
Other current assets
|
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20,911
|
|
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9,799
|
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Total Current Assets
|
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303,669
|
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207,350
|
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Property, Plant, and Equipment, at Cost
|
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153,878
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124,424
|
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Less: accumulated depreciation and amortization
|
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83,505
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76,720
|
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70,373
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47,704
|
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|
||||
Other Assets
|
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13,546
|
|
|
11,452
|
|
||
Intangible Assets, Net (Notes 1 and 2)
|
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135,231
|
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|
52,730
|
|
||
Goodwill (Notes 1 and 2)
|
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264,840
|
|
|
151,455
|
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||
Total Assets
|
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$
|
787,659
|
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$
|
470,691
|
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||||
Liabilities and Stockholders' Equity
|
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Current Liabilities:
|
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|
|
||||
Current maturities of long-term obligations (Note 6)
|
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$
|
707
|
|
|
$
|
643
|
|
Accounts payable
|
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35,136
|
|
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23,929
|
|
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Customer deposits
|
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27,940
|
|
|
21,168
|
|
||
Accrued payroll and employee benefits
|
|
25,448
|
|
|
20,508
|
|
||
Billings in excess of costs and fees
|
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10,781
|
|
|
1,271
|
|
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Other current liabilities
|
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29,068
|
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21,394
|
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Total Current Liabilities
|
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129,080
|
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88,913
|
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|
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Long-Term Deferred Income Taxes
|
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31,070
|
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14,631
|
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Other Long-Term Liabilities
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18,531
|
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17,100
|
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Long-Term Obligations (Note 6)
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278,091
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65,768
|
|
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|
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Commitments and Contingencies (Note 13)
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||||
Stockholders' Equity:
|
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|
|
|
|
|
||
Preferred stock, $.01 par value, 5,000,000 shares authorized; none issued
|
|
—
|
|
|
—
|
|
||
Common stock, $.01 par value, 150,000,000 shares authorized; 14,624,159 shares issued
|
|
146
|
|
|
146
|
|
||
Capital in excess of par value
|
|
101,774
|
|
|
101,405
|
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||
Retained earnings
|
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344,449
|
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321,050
|
|
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Treasury stock at cost, 3,616,838 and 3,686,532 shares
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(88,627
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)
|
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(90,335
|
)
|
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Accumulated other comprehensive items (Note 9)
|
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(28,197
|
)
|
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(49,637
|
)
|
||
Total Kadant Stockholders' Equity
|
|
329,545
|
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282,629
|
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||
Noncontrolling interest
|
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1,342
|
|
|
1,650
|
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||
Total Stockholders' Equity
|
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330,887
|
|
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284,279
|
|
||
Total Liabilities and Stockholders' Equity
|
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$
|
787,659
|
|
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$
|
470,691
|
|
|
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Three Months Ended
|
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Nine Months Ended
|
||||||||||||
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September 30,
2017 |
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October 1,
2016 |
|
September 30,
2017 |
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October 1,
2016 |
||||||||
(In thousands, except per share amounts)
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|
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||||||||||||
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Revenues (Note 12)
|
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$
|
152,794
|
|
|
$
|
105,519
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|
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$
|
365,893
|
|
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$
|
313,885
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Costs and Operating Expenses:
|
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Cost of revenues
|
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88,166
|
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57,440
|
|
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199,449
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|
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171,569
|
|
||||
Selling, general, and administrative expenses
|
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42,535
|
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33,527
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116,493
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102,095
|
|
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Research and development expenses
|
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2,635
|
|
|
1,991
|
|
|
7,004
|
|
|
5,640
|
|
||||
Other income (Note 3)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(317
|
)
|
||||
|
|
133,336
|
|
|
92,958
|
|
|
322,946
|
|
|
278,987
|
|
||||
|
|
|
|
|
|
|
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|
||||||||
Operating Income
|
|
19,458
|
|
|
12,561
|
|
|
42,947
|
|
|
34,898
|
|
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||||||||
Interest Income
|
|
94
|
|
|
54
|
|
|
300
|
|
|
175
|
|
||||
Interest Expense
|
|
(1,282
|
)
|
|
(305
|
)
|
|
(2,022
|
)
|
|
(914
|
)
|
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||||||||
Income Before Provision for Income Taxes
|
|
18,270
|
|
|
12,310
|
|
|
41,225
|
|
|
34,159
|
|
||||
Provision for Income Taxes (Note 5)
|
|
4,860
|
|
|
3,081
|
|
|
10,550
|
|
|
9,500
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income from Continuing Operations
|
|
13,410
|
|
|
9,229
|
|
|
30,675
|
|
|
24,659
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income from Discontinued Operation (net of income tax provision of $1 in the 2016 periods)
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net Income
|
|
13,410
|
|
|
9,232
|
|
|
30,675
|
|
|
24,662
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net Income Attributable to Noncontrolling Interest
|
|
(125
|
)
|
|
(75
|
)
|
|
(343
|
)
|
|
(318
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net Income Attributable to Kadant
|
|
$
|
13,285
|
|
|
$
|
9,157
|
|
|
$
|
30,332
|
|
|
$
|
24,344
|
|
|
|
|
|
|
|
|
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|
||||||||
Earnings per Share Attributable to Kadant (Note 4):
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
1.21
|
|
|
$
|
0.84
|
|
|
$
|
2.76
|
|
|
$
|
2.24
|
|
Diluted
|
|
$
|
1.17
|
|
|
$
|
0.82
|
|
|
$
|
2.69
|
|
|
$
|
2.19
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted Average Shares (Note 4):
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
|
11,004
|
|
|
10,901
|
|
|
10,986
|
|
|
10,854
|
|
||||
Diluted
|
|
11,344
|
|
|
11,189
|
|
|
11,282
|
|
|
11,120
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Cash Dividends Declared per Common Share
|
|
$
|
0.21
|
|
|
$
|
0.19
|
|
|
$
|
0.63
|
|
|
$
|
0.57
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
2017 |
|
October 1,
2016 |
|
September 30,
2017 |
|
October 1,
2016 |
||||||||
(In thousands)
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net Income
|
|
$
|
13,410
|
|
|
$
|
9,232
|
|
|
$
|
30,675
|
|
|
$
|
24,662
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other Comprehensive Items:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign currency translation adjustment
|
|
7,740
|
|
|
(979
|
)
|
|
21,427
|
|
|
(243
|
)
|
||||
Pension and other post-retirement liability adjustments (net of tax provision (benefit) of $26 and $86 in the three and nine months ended September 30, 2017, respectively, and $68 and $(91) in the three and nine months ended October 1, 2016, respectively)
|
|
(11
|
)
|
|
127
|
|
|
152
|
|
|
(144
|
)
|
||||
Deferred gain on hedging instruments (net of tax provision (benefit) of $28 and $44 in the three and nine months ended September 30, 2017, respectively, and $75 and $(148) in the three and nine months ended October 1, 2016, respectively)
|
|
58
|
|
|
139
|
|
|
92
|
|
|
99
|
|
||||
Other Comprehensive Items
|
|
7,787
|
|
|
(713
|
)
|
|
21,671
|
|
|
(288
|
)
|
||||
Comprehensive Income
|
|
21,197
|
|
|
8,519
|
|
|
52,346
|
|
|
24,374
|
|
||||
Comprehensive Income Attributable to Noncontrolling Interest
|
|
(193
|
)
|
|
(92
|
)
|
|
(574
|
)
|
|
(358
|
)
|
||||
Comprehensive Income Attributable to Kadant
|
|
$
|
21,004
|
|
|
$
|
8,427
|
|
|
$
|
51,772
|
|
|
$
|
24,016
|
|
|
|
Nine Months Ended
|
||||||
|
|
September 30,
2017 |
|
October 1,
2016 |
||||
(In thousands)
|
|
|
||||||
|
|
|
|
|
||||
Operating Activities:
|
|
|
|
|
||||
Net income attributable to Kadant
|
|
$
|
30,332
|
|
|
$
|
24,344
|
|
Net income attributable to noncontrolling interest
|
|
343
|
|
|
318
|
|
||
Income from discontinued operation
|
|
—
|
|
|
(3
|
)
|
||
Net income
|
|
30,675
|
|
|
24,659
|
|
||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||
Depreciation and amortization
|
|
13,056
|
|
|
10,934
|
|
||
Stock-based compensation expense
|
|
4,283
|
|
|
3,865
|
|
||
Provision for losses on accounts receivable
|
|
238
|
|
|
420
|
|
||
Loss (gain) on the sale of property, plant, and equipment
|
|
37
|
|
|
(384
|
)
|
||
Other items, net
|
|
(738
|
)
|
|
256
|
|
||
Contributions to U.S. pension plan
|
|
(810
|
)
|
|
(810
|
)
|
||
Changes in current assets and liabilities, net of effects of acquisitions:
|
|
|
|
|
|
|
||
Accounts receivable
|
|
(16,225
|
)
|
|
3,731
|
|
||
Unbilled contract costs and fees
|
|
(2,582
|
)
|
|
1,713
|
|
||
Inventories
|
|
(3,504
|
)
|
|
2,051
|
|
||
Other current assets
|
|
(2,517
|
)
|
|
620
|
|
||
Accounts payable
|
|
2,049
|
|
|
(5,599
|
)
|
||
Other current liabilities
|
|
8,366
|
|
|
(6,717
|
)
|
||
Net cash provided by continuing operations
|
|
32,328
|
|
|
34,739
|
|
||
Net cash used in discontinued operation
|
|
—
|
|
|
(2
|
)
|
||
Net cash provided by operating activities
|
|
32,328
|
|
|
34,737
|
|
||
|
|
|
|
|
||||
Investing Activities:
|
|
|
|
|
|
|
||
Acquisitions, net of cash acquired (Note 2)
|
|
(204,228
|
)
|
|
(56,617
|
)
|
||
Purchases of property, plant, and equipment
|
|
(8,718
|
)
|
|
(3,579
|
)
|
||
Proceeds from sale of property, plant, and equipment
|
|
111
|
|
|
409
|
|
||
Net cash used in investing activities
|
|
(212,835
|
)
|
|
(59,787
|
)
|
||
|
|
|
|
|
||||
Financing Activities:
|
|
|
|
|
|
|
||
Proceeds from issuance of debt (Note 6)
|
|
222,019
|
|
|
48,046
|
|
||
Repayment of debt
|
|
(20,272
|
)
|
|
(15,429
|
)
|
||
Dividends paid
|
|
(6,699
|
)
|
|
(5,964
|
)
|
||
Tax withholding payments related to stock-based compensation
|
|
(2,206
|
)
|
|
(2,572
|
)
|
||
Payment of debt issuance costs (Note 6)
|
|
(1,257
|
)
|
|
(27
|
)
|
||
Payment of contingent consideration
|
|
—
|
|
|
(1,091
|
)
|
||
Proceeds from issuance of Company common stock
|
|
—
|
|
|
1,780
|
|
||
Change in restricted cash
|
|
1,523
|
|
|
(793
|
)
|
||
Dividend paid to noncontrolling interest
|
|
(882
|
)
|
|
—
|
|
||
Other financing activities
|
|
(288
|
)
|
|
—
|
|
||
Net cash provided by financing activities
|
|
191,938
|
|
|
23,950
|
|
||
|
|
|
|
|
||||
Exchange Rate Effect on Cash and Cash Equivalents
|
|
7,704
|
|
|
(1,195
|
)
|
||
|
|
|
|
|
||||
Increase (Decrease) in Cash and Cash Equivalents
|
|
19,135
|
|
|
(2,295
|
)
|
||
Cash and Cash Equivalents at Beginning of Period
|
|
71,487
|
|
|
65,530
|
|
||
Cash and Cash Equivalents at End of Period
|
|
$
|
90,622
|
|
|
$
|
63,235
|
|
(In thousands, except share amounts)
|
|
Common
Stock
|
|
Capital in
Excess of Par Value
|
|
Retained Earnings
|
|
Treasury
Stock
|
|
Accumulated
Other
Comprehensive Items
|
|
Noncontrolling Interest
|
|
Total
Stockholders' Equity
|
||||||||||||||||||||
|
Shares
|
|
Amount
|
|
|
|
Shares
|
|
Amount
|
|
|
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at January 2, 2016
|
|
14,624,159
|
|
|
$
|
146
|
|
|
$
|
100,536
|
|
|
$
|
297,258
|
|
|
3,850,779
|
|
|
$
|
(94,359
|
)
|
|
$
|
(36,972
|
)
|
|
$
|
1,336
|
|
|
$
|
267,945
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24,344
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
318
|
|
|
24,662
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Dividends declared
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,207
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,207
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Activity under stock plans
|
|
—
|
|
|
—
|
|
|
(343
|
)
|
|
—
|
|
|
(141,373
|
)
|
|
3,464
|
|
|
—
|
|
|
—
|
|
|
3,121
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other comprehensive items
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(328
|
)
|
|
40
|
|
|
(288
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at October 1, 2016
|
|
14,624,159
|
|
|
$
|
146
|
|
|
$
|
100,193
|
|
|
$
|
315,395
|
|
|
3,709,406
|
|
|
$
|
(90,895
|
)
|
|
$
|
(37,300
|
)
|
|
$
|
1,694
|
|
|
$
|
289,233
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at December 31, 2016
|
|
14,624,159
|
|
|
$
|
146
|
|
|
$
|
101,405
|
|
|
$
|
321,050
|
|
|
3,686,532
|
|
|
$
|
(90,335
|
)
|
|
$
|
(49,637
|
)
|
|
$
|
1,650
|
|
|
$
|
284,279
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30,332
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
343
|
|
|
30,675
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Dividends declared
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,933
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,933
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Dividend paid to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(882
|
)
|
|
(882
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Activity under stock plans
|
|
—
|
|
|
—
|
|
|
369
|
|
|
—
|
|
|
(69,694
|
)
|
|
1,708
|
|
|
—
|
|
|
—
|
|
|
2,077
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other comprehensive items
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,440
|
|
|
231
|
|
|
21,671
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at September 30, 2017
|
|
14,624,159
|
|
|
$
|
146
|
|
|
$
|
101,774
|
|
|
$
|
344,449
|
|
|
3,616,838
|
|
|
$
|
(88,627
|
)
|
|
$
|
(28,197
|
)
|
|
$
|
1,342
|
|
|
$
|
330,887
|
|
|
|
Nine Months Ended
|
||||||
(In thousands)
|
|
September 30,
2017 |
|
October 1,
2016 |
||||
Non-Cash Investing Activities:
|
|
|
|
|
|
|
||
Fair value of assets acquired
|
|
$
|
241,141
|
|
|
$
|
87,060
|
|
Cash paid for acquired businesses
|
|
(206,447
|
)
|
|
(58,894
|
)
|
||
Liabilities assumed of acquired businesses
|
|
$
|
34,694
|
|
|
$
|
28,166
|
|
Non-Cash Financing Activities:
|
|
|
|
|
|
|
||
Issuance of Company common stock
|
|
$
|
3,018
|
|
|
$
|
3,260
|
|
Dividends declared but unpaid
|
|
$
|
2,312
|
|
|
$
|
2,074
|
|
|
|
September 30,
2017 |
|
December 31,
2016 |
||||
(In thousands)
|
|
|
||||||
Raw Materials and Supplies
|
|
$
|
40,969
|
|
|
$
|
21,086
|
|
Work in Process
|
|
20,158
|
|
|
12,293
|
|
||
Finished Goods
|
|
29,323
|
|
|
21,572
|
|
||
Total Inventories
|
|
$
|
90,450
|
|
|
$
|
54,951
|
|
|
|
September 30,
2017 |
|
December 31,
2016 |
||||
(In thousands)
|
|
|
||||||
Indefinite-Lived, Gross
|
|
$
|
8,100
|
|
|
$
|
8,100
|
|
Acquisition (Note 2)
|
|
8,500
|
|
|
—
|
|
||
Currency translation
|
|
271
|
|
|
—
|
|
||
Indefinite-Lived, Net
|
|
16,871
|
|
|
8,100
|
|
||
|
|
|
|
|
||||
Definite-Lived, Gross
|
|
101,743
|
|
|
77,052
|
|
||
Acquisitions (Note 2)
|
|
75,540
|
|
|
24,691
|
|
||
Accumulated amortization
|
|
(56,913
|
)
|
|
(49,040
|
)
|
||
Currency translation
|
|
(2,010
|
)
|
|
(8,073
|
)
|
||
Definite-Lived, Net
|
|
118,360
|
|
|
44,630
|
|
||
|
|
|
|
|
||||
Total Intangible Assets, Net
|
|
$
|
135,231
|
|
|
$
|
52,730
|
|
(In thousands)
|
|
Gross
|
|
Currency
Translation |
|
Accumulated
Amortization |
|
Net
|
||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
||||||||
Customer relationships
|
|
$
|
111,801
|
|
|
$
|
(821
|
)
|
|
$
|
(26,404
|
)
|
|
$
|
84,576
|
|
Intellectual property
|
|
46,501
|
|
|
(817
|
)
|
|
(18,846
|
)
|
|
26,838
|
|
||||
Tradenames
|
|
21,827
|
|
|
(39
|
)
|
|
(1,382
|
)
|
|
20,406
|
|
||||
Other
|
|
13,754
|
|
|
(62
|
)
|
|
(10,281
|
)
|
|
3,411
|
|
||||
|
|
$
|
193,883
|
|
|
$
|
(1,739
|
)
|
|
$
|
(56,913
|
)
|
|
$
|
135,231
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Customer relationships
|
|
$
|
59,101
|
|
|
$
|
(5,202
|
)
|
|
$
|
(21,805
|
)
|
|
$
|
32,094
|
|
Intellectual property
|
|
27,101
|
|
|
(2,052
|
)
|
|
(17,105
|
)
|
|
7,944
|
|
||||
Tradenames
|
|
12,547
|
|
|
(591
|
)
|
|
(1,065
|
)
|
|
10,891
|
|
||||
Other
|
|
11,094
|
|
|
(228
|
)
|
|
(9,065
|
)
|
|
1,801
|
|
||||
|
|
$
|
109,843
|
|
|
$
|
(8,073
|
)
|
|
$
|
(49,040
|
)
|
|
$
|
52,730
|
|
(In thousands)
|
|
Papermaking Systems Segment
|
|
Wood Processing Systems Segment
|
|
Total
|
||||||
Balance at December 31, 2016
|
|
|
|
|
|
|
||||||
Gross balance
|
|
$
|
219,699
|
|
|
$
|
17,265
|
|
|
$
|
236,964
|
|
Accumulated impairment losses
|
|
(85,509
|
)
|
|
—
|
|
|
(85,509
|
)
|
|||
Net balance
|
|
134,190
|
|
|
17,265
|
|
|
151,455
|
|
|||
2017 Adjustments
|
|
|
|
|
|
|
||||||
Acquisitions (Note 2)
|
|
15,277
|
|
|
84,606
|
|
|
99,883
|
|
|||
Currency translation
|
|
9,937
|
|
|
3,565
|
|
|
13,502
|
|
|||
Total 2017 adjustments
|
|
25,214
|
|
|
88,171
|
|
|
113,385
|
|
|||
Balance at September 30, 2017
|
|
|
|
|
|
|
|
|
|
|||
Gross balance
|
|
244,913
|
|
|
105,436
|
|
|
350,349
|
|
|||
Accumulated impairment losses
|
|
(85,509
|
)
|
|
—
|
|
|
(85,509
|
)
|
|||
Net balance
|
|
$
|
159,404
|
|
|
$
|
105,436
|
|
|
$
|
264,840
|
|
|
|
Nine Months Ended
|
||||||
(In thousands)
|
|
September 30,
2017 |
|
October 1,
2016 |
||||
Balance at Beginning of Year
|
|
$
|
3,843
|
|
|
$
|
3,670
|
|
Provision charged to income
|
|
1,931
|
|
|
2,454
|
|
||
Usage
|
|
(1,506
|
)
|
|
(2,574
|
)
|
||
Acquisitions
|
|
790
|
|
|
991
|
|
||
Currency translation
|
|
382
|
|
|
(19
|
)
|
||
Balance at End of Period
|
|
$
|
5,440
|
|
|
$
|
4,522
|
|
|
|
NII
|
|
Unaflex
|
||||
(In thousands)
|
|
July 5, 2017
|
|
August 14, 2017
|
||||
|
|
|
|
|
||||
Net Assets Acquired:
|
|
|
|
|
||||
Cash and Cash Equivalents
|
|
$
|
2,219
|
|
|
$
|
—
|
|
Accounts Receivable
|
|
6,542
|
|
|
2,079
|
|
||
Inventories
|
|
26,181
|
|
|
1,903
|
|
||
Property, Plant, and Equipment
|
|
12,981
|
|
|
1,357
|
|
||
Other Assets
|
|
1,732
|
|
|
90
|
|
||
Definite-Lived Intangible Assets
|
|
|
|
|
||||
Product technology
|
|
17,100
|
|
|
2,300
|
|
||
Customer relationships
|
|
44,700
|
|
|
8,000
|
|
||
Other
|
|
2,540
|
|
|
900
|
|
||
Indefinite-Lived Intangible Assets
|
|
|
|
|
||||
Tradenames
|
|
8,500
|
|
|
—
|
|
||
Goodwill
|
|
84,606
|
|
|
15,277
|
|
||
Total assets acquired
|
|
207,101
|
|
|
31,906
|
|
||
|
|
|
|
|
||||
Accounts Payable
|
|
4,970
|
|
|
358
|
|
||
Customer Deposits
|
|
7,396
|
|
|
100
|
|
||
Long-Term Deferred Tax Liability
|
|
17,073
|
|
|
—
|
|
||
Other Liabilities
|
|
4,788
|
|
|
174
|
|
||
Total liabilities assumed
|
|
34,227
|
|
|
632
|
|
||
Net assets acquired
|
|
$
|
172,874
|
|
|
$
|
31,274
|
|
|
|
|
|
|
||||
Purchase Price:
|
|
|
|
|
|
|||
Cash
|
|
$
|
4,990
|
|
|
$
|
—
|
|
Cash Paid to Seller Borrowed Under the Revolving Credit Facility
|
|
170,018
|
|
|
31,274
|
|
||
Post-closing Adjustment
|
|
(2,134
|
)
|
|
—
|
|
||
Total purchase price
|
|
$
|
172,874
|
|
|
$
|
31,274
|
|
|
|
Nine Months Ended
|
||||||
(In thousands, except per share amounts)
|
|
September 30,
2017 |
|
October 1,
2016 |
||||
Revenues
|
|
$
|
416,570
|
|
|
$
|
383,450
|
|
|
|
|
|
|
||||
Net Income Attributable to Kadant
|
|
$
|
40,929
|
|
|
$
|
20,680
|
|
|
|
|
|
|
||||
Earnings per Share Attributable to Kadant:
|
|
|
|
|
||||
Basic
|
|
$
|
3.73
|
|
|
$
|
1.91
|
|
Diluted
|
|
$
|
3.63
|
|
|
$
|
1.86
|
|
•
|
Pre-tax charge to SG&A expenses of $
5,002,000
in 2016 and reversal in 2017, for acquisition transaction costs.
|
•
|
Estimated pre-tax charge to cost of revenues of $
4,986,000
in 2016 and reversal of $
3,360,000
in 2017, for the sale of NII and Unaflex inventory revalued at the date of acquisition.
|
•
|
Estimated pre-tax charge to SG&A expenses of $
1,610,000
in 2016 and reversal of $
958,000
in 2017, for intangible asset amortization related to acquired backlog.
|
•
|
Reversal of pre-tax income of $
852,000
in 2017, related to NII's gain on the sale of a building.
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
2017 |
|
October 1,
2016 |
|
September 30,
2017 |
|
October 1,
2016 |
||||||||
(In thousands, except per share amounts)
|
|
|
|
|
||||||||||||
Amounts Attributable to Kadant:
|
|
|
|
|
|
|
|
|
||||||||
Income from Continuing Operations
|
|
$
|
13,285
|
|
|
$
|
9,154
|
|
|
$
|
30,332
|
|
|
$
|
24,341
|
|
Income from Discontinued Operation
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||
Net Income
|
|
$
|
13,285
|
|
|
$
|
9,157
|
|
|
$
|
30,332
|
|
|
$
|
24,344
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic Weighted Average Shares
|
|
11,004
|
|
|
10,901
|
|
|
10,986
|
|
|
10,854
|
|
||||
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares
|
|
340
|
|
|
288
|
|
|
296
|
|
|
266
|
|
||||
Diluted Weighted Average Shares
|
|
11,344
|
|
|
11,189
|
|
|
11,282
|
|
|
11,120
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Basic Earnings per Share
|
|
$
|
1.21
|
|
|
$
|
0.84
|
|
|
$
|
2.76
|
|
|
$
|
2.24
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted Earnings per Share
|
|
$
|
1.17
|
|
|
$
|
0.82
|
|
|
$
|
2.69
|
|
|
$
|
2.19
|
|
|
|
September 30,
2017 |
|
December 31,
2016 |
||||
(In thousands)
|
|
|
||||||
Revolving Credit Facility, due 2022
|
|
$
|
273,577
|
|
|
$
|
61,494
|
|
Obligations Under Capital Lease, due 2017 to 2022
|
|
4,639
|
|
|
4,309
|
|
||
Other Borrowings, due 2017 to 2023
|
|
582
|
|
|
608
|
|
||
Total
|
|
278,798
|
|
|
66,411
|
|
||
Less: Current Maturities of Long-Term Obligations
|
|
(707
|
)
|
|
(643
|
)
|
||
Long-Term Obligations
|
|
$
|
278,091
|
|
|
$
|
65,768
|
|
(In thousands)
|
|
Foreign
Currency
Translation
Adjustment
|
|
Unrecognized
Prior Service
Cost on Pension and Other Post-
Retirement Benefit Plans
|
|
Deferred Loss
on Pension and
Other Post-
Retirement Benefit Plans
|
|
Deferred Gain (Loss)
on Hedging
Instruments
|
|
Accumulated
Other
Comprehensive
Items
|
||||||||||
Balance at December 31, 2016
|
|
$
|
(41,094
|
)
|
|
$
|
(397
|
)
|
|
$
|
(8,158
|
)
|
|
$
|
12
|
|
|
$
|
(49,637
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
21,196
|
|
|
(115
|
)
|
|
(78
|
)
|
|
51
|
|
|
21,054
|
|
|||||
Reclassifications from AOCI
|
|
—
|
|
|
70
|
|
|
275
|
|
|
41
|
|
|
386
|
|
|||||
Net current period other comprehensive income (loss)
|
|
21,196
|
|
|
(45
|
)
|
|
197
|
|
|
92
|
|
|
21,440
|
|
|||||
Balance at September 30, 2017
|
|
$
|
(19,898
|
)
|
|
$
|
(442
|
)
|
|
$
|
(7,961
|
)
|
|
$
|
104
|
|
|
$
|
(28,197
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at January 2, 2016
|
|
$
|
(27,932
|
)
|
|
$
|
(489
|
)
|
|
$
|
(8,322
|
)
|
|
$
|
(229
|
)
|
|
$
|
(36,972
|
)
|
Other comprehensive loss before reclassifications
|
|
(283
|
)
|
|
(1
|
)
|
|
(575
|
)
|
|
(265
|
)
|
|
(1,124
|
)
|
|||||
Reclassifications from AOCI
|
|
—
|
|
|
71
|
|
|
361
|
|
|
364
|
|
|
796
|
|
|||||
Net current period other comprehensive (loss) income
|
|
(283
|
)
|
|
70
|
|
|
(214
|
)
|
|
99
|
|
|
(328
|
)
|
|||||
Balance at October 1, 2016
|
|
$
|
(28,215
|
)
|
|
$
|
(419
|
)
|
|
$
|
(8,536
|
)
|
|
$
|
(130
|
)
|
|
$
|
(37,300
|
)
|
(a)
|
Included in the computation of net periodic benefit cost. See Note 8 for additional information.
|
(b)
|
See Note 10 for additional information.
|
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||
|
|
Balance Sheet Location
|
|
Asset (Liability) (a)
|
|
Notional Amount (b)
|
|
Asset (Liability) (a)
|
|
Notional Amount
|
||||||||
(In thousands)
|
|
|
|
|
|
|||||||||||||
Derivatives Designated as Hedging Instruments:
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives in an Asset Position:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Forward currency-exchange contracts
|
|
Other Current Assets
|
|
$
|
88
|
|
|
$
|
950
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest rate swap agreement
|
|
Other Long-Term Assets
|
|
$
|
65
|
|
|
$
|
10,000
|
|
|
$
|
62
|
|
|
$
|
10,000
|
|
Derivatives in a Liability Position:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Forward currency-exchange contracts
|
|
Other Current Liabilities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(41
|
)
|
|
$
|
2,380
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives Not Designated as Hedging Instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Derivatives in an Asset Position:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Forward currency-exchange contracts
|
|
Other Current Assets
|
|
$
|
8
|
|
|
$
|
2,169
|
|
|
$
|
2
|
|
|
$
|
227
|
|
Derivatives in a Liability Position:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Forward currency-exchange contracts
|
|
Other Current Liabilities
|
|
$
|
(4
|
)
|
|
$
|
886
|
|
|
$
|
(237
|
)
|
|
$
|
17,185
|
|
(a)
|
See Note 11 for the fair value measurements relating to these financial instruments.
|
(b)
|
The total notional amount is indicative of the level of the Company's derivative activity during the first
nine
months of
2017
, except for the purchase of forward currency-exchange contracts entered into in the second quarter of 2017 in anticipation of consideration paid for the acquisition of NII.
|
(In thousands)
|
|
Interest Rate Swap
Agreement
|
|
Forward Currency-
Exchange
Contracts
|
|
Total
|
||||||
Unrealized Gain (Loss), Net of Tax, at December 31, 2016
|
|
$
|
40
|
|
|
$
|
(28
|
)
|
|
$
|
12
|
|
Loss reclassified to earnings (a)
|
|
17
|
|
|
24
|
|
|
41
|
|
|||
(Loss) gain recognized in AOCI
|
|
(15
|
)
|
|
66
|
|
|
51
|
|
|||
Unrealized Gain, Net of Tax, at September 30, 2017
|
|
$
|
42
|
|
|
$
|
62
|
|
|
$
|
104
|
|
•
|
Level 1—Quoted prices in active markets for identical assets or liabilities.
|
•
|
Level 2—Inputs, other than quoted prices in active markets, that are observable either directly or indirectly.
|
•
|
Level 3—Unobservable inputs based on the Company's own assumptions.
|
|
|
Fair Value as of September 30, 2017
|
||||||||||||||
(In thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Money market funds and time deposits
|
|
$
|
15,829
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,829
|
|
Forward currency-exchange contracts
|
|
$
|
—
|
|
|
$
|
96
|
|
|
$
|
—
|
|
|
$
|
96
|
|
Interest rate swap agreement
|
|
$
|
—
|
|
|
$
|
65
|
|
|
$
|
—
|
|
|
$
|
65
|
|
Banker's acceptance drafts (a)
|
|
$
|
—
|
|
|
$
|
16,687
|
|
|
$
|
—
|
|
|
$
|
16,687
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Forward currency-exchange contracts
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
|
Fair Value as of December 31, 2016
|
||||||||||||||
(In thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Money market funds and time deposits
|
|
$
|
10,855
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,855
|
|
Forward currency-exchange contracts
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
2
|
|
Interest rate swap agreement
|
|
$
|
—
|
|
|
$
|
62
|
|
|
$
|
—
|
|
|
$
|
62
|
|
Banker's acceptance drafts (a)
|
|
$
|
—
|
|
|
$
|
7,852
|
|
|
$
|
—
|
|
|
$
|
7,852
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Forward currency-exchange contracts
|
|
$
|
—
|
|
|
$
|
278
|
|
|
$
|
—
|
|
|
$
|
278
|
|
(a)
|
Included in accounts receivable in the accompanying condensed consolidated balance sheet.
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||||||
(In thousands)
|
|
|
|
|
||||||||||||
Long-term Debt Obligations:
|
|
|
|
|
|
|
|
|
||||||||
Revolving credit facility
|
|
$
|
273,577
|
|
|
$
|
273,577
|
|
|
$
|
61,494
|
|
|
$
|
61,494
|
|
Capital lease obligations
|
|
4,115
|
|
|
4,115
|
|
|
3,857
|
|
|
3,857
|
|
||||
Other borrowings
|
|
399
|
|
|
399
|
|
|
417
|
|
|
417
|
|
||||
|
|
$
|
278,091
|
|
|
$
|
278,091
|
|
|
$
|
65,768
|
|
|
$
|
65,768
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
October 1,
|
|
September 30,
|
|
October 1,
|
||||||||
(In thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||||
Papermaking Systems
|
|
$
|
111,135
|
|
|
$
|
96,078
|
|
|
$
|
295,416
|
|
|
$
|
280,436
|
|
Wood Processing Systems
|
|
39,714
|
|
|
7,962
|
|
|
61,050
|
|
|
25,437
|
|
||||
Fiber-based Products
|
|
1,945
|
|
|
1,479
|
|
|
9,427
|
|
|
8,012
|
|
||||
|
|
$
|
152,794
|
|
|
$
|
105,519
|
|
|
$
|
365,893
|
|
|
$
|
313,885
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income Before Provision for Income Taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Papermaking Systems (a)
|
|
$
|
21,544
|
|
|
$
|
16,915
|
|
|
$
|
52,932
|
|
|
$
|
44,747
|
|
Wood Processing Systems (b)
|
|
4,418
|
|
|
2,150
|
|
|
6,196
|
|
|
5,406
|
|
||||
Corporate and Fiber-based Products (c)
|
|
(6,504
|
)
|
|
(6,504
|
)
|
|
(16,181
|
)
|
|
(15,255
|
)
|
||||
Total operating income
|
|
19,458
|
|
|
12,561
|
|
|
42,947
|
|
|
34,898
|
|
||||
Interest expense, net
|
|
(1,188
|
)
|
|
(251
|
)
|
|
(1,722
|
)
|
|
(739
|
)
|
||||
|
|
$
|
18,270
|
|
|
$
|
12,310
|
|
|
$
|
41,225
|
|
|
$
|
34,159
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30,
|
|
October 1,
|
|
September 30,
|
|
October 1,
|
||||||||
(In thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Capital Expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Papermaking Systems
|
|
$
|
3,790
|
|
|
$
|
1,632
|
|
|
$
|
6,567
|
|
|
$
|
3,341
|
|
Other
|
|
1,493
|
|
|
211
|
|
|
2,151
|
|
|
238
|
|
||||
|
|
$
|
5,283
|
|
|
$
|
1,843
|
|
|
$
|
8,718
|
|
|
$
|
3,579
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
September 30,
|
|
December 31,
|
||||||||
(In thousands)
|
|
|
|
|
|
2017
|
|
2016
|
||||||||
Total Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Papermaking Systems
|
|
|
|
|
|
$
|
492,071
|
|
|
$
|
407,538
|
|
||||
Wood Processing Systems
|
|
|
|
|
|
259,487
|
|
|
52,407
|
|
||||||
Other (d)
|
|
|
|
|
|
36,101
|
|
|
10,746
|
|
||||||
|
|
|
|
|
|
$
|
787,659
|
|
|
$
|
470,691
|
|
|
-
|
Stock-Preparation: custom-engineered systems and equipment, as well as standard individual components, for baling, pulping, de-inking, screening, cleaning, and refining primarily recyclable fibers; balers and related equipment used in the processing of recyclable and waste materials; and filtering, recausticizing, and evaporation equipment and systems used in the production of virgin pulp;
|
|
-
|
Doctoring, Cleaning, & Filtration: doctoring systems and related consumables that continuously clean rolls to keep paper machines and other industrial processes running efficiently; doctor blades made of a variety of materials to perform functions including cleaning, creping, web removal, flaking, and the application of coatings; profiling systems that control moisture, web curl, and gloss during paper converting; and systems and equipment used to continuously clean fabrics, belts, and rolls, drain water from pulp mixtures, form the sheet or web, and filter the process water for reuse. Doctoring and cleaning systems are also used in other process industries, such as carbon fiber, textiles and food processing; and
|
|
-
|
Fluid-Handling: rotary joints, expansion joints, precision unions, steam and condensate systems, components, and controls used in industrial piping systems to efficiently transfer fluid, power, and data.
|
|
-
|
Stranders: disc and ring stranders and related parts and consumables that cut batch-fed logs into strands for OSB production;
|
|
-
|
Debarkers: ring and rotary debarkers and related parts and consumables that employ a combination of mechanical abrasion and log-to-log contact to efficiently remove bark from logs of all shapes and species;
|
|
-
|
Chippers: disc, drum, and veneer chippers and related parts and consumables that are high quality, robust chipper systems for waste-wood and whole-log applications found in pulp woodrooms, chip plants, and sawmill and planer mill sites; and
|
|
-
|
Logging machinery: feller bunchers, log loaders, and swing yarders that are used to harvest and gather timber for lumber production.
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
(Non-GAAP) Adjusted Total Increase
|
||||||||||||||
(In thousands) |
|
September 30,
2017 |
|
October 1,
2016 |
|
Total Increase
|
|
Currency Translation
|
|
Acquisitions
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Stock-Preparation
|
|
$
|
52,065
|
|
|
$
|
44,099
|
|
|
$
|
7,966
|
|
|
$
|
1,061
|
|
|
$
|
—
|
|
|
$
|
6,905
|
|
Doctoring, Cleaning, & Filtration
|
|
30,538
|
|
|
28,955
|
|
|
1,583
|
|
|
454
|
|
|
—
|
|
|
1,129
|
|
||||||
Fluid-Handling
|
|
28,532
|
|
|
23,024
|
|
|
5,508
|
|
|
616
|
|
|
2,522
|
|
|
2,370
|
|
||||||
Papermaking Systems
|
|
111,135
|
|
|
96,078
|
|
|
15,057
|
|
|
2,131
|
|
|
2,522
|
|
|
10,404
|
|
||||||
Wood Processing Systems
|
|
39,714
|
|
|
7,962
|
|
|
31,752
|
|
|
510
|
|
|
26,668
|
|
|
4,574
|
|
||||||
Fiber-based Products
|
|
1,945
|
|
|
1,479
|
|
|
466
|
|
|
—
|
|
|
—
|
|
|
466
|
|
||||||
|
|
$
|
152,794
|
|
|
$
|
105,519
|
|
|
$
|
47,275
|
|
|
$
|
2,641
|
|
|
$
|
29,190
|
|
|
$
|
15,444
|
|
|
|
Three Months Ended
|
||||
|
|
September 30,
2017 |
|
October 1,
2016 |
||
Gross Profit Margin:
|
|
|
|
|
||
Papermaking Systems
|
|
45.5
|
%
|
|
46.0
|
%
|
Wood Processing Systems
|
|
33.5
|
%
|
|
45.9
|
%
|
Fiber-based Products
|
|
35.7
|
%
|
|
15.0
|
%
|
|
|
42.3
|
%
|
|
45.6
|
%
|
|
|
Nine Months Ended
|
|
|
|
|
|
|
|
(Non-GAAP) Adjusted Total Increase (Decrease)
|
||||||||||||||
(In thousands) |
|
September 30,
2017 |
|
October 1,
2016 |
|
Total Increase
|
|
Currency Translation
|
|
Acquisitions
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Stock-Preparation
|
|
$
|
139,396
|
|
|
$
|
132,158
|
|
|
$
|
7,238
|
|
|
$
|
(675
|
)
|
|
$
|
13,311
|
|
|
$
|
(5,398
|
)
|
Doctoring, Cleaning, & Filtration
|
|
82,921
|
|
|
80,374
|
|
|
2,547
|
|
|
(749
|
)
|
|
—
|
|
|
3,296
|
|
||||||
Fluid-Handling
|
|
73,099
|
|
|
67,904
|
|
|
5,195
|
|
|
(54
|
)
|
|
2,522
|
|
|
2,727
|
|
||||||
Papermaking Systems
|
|
295,416
|
|
|
280,436
|
|
|
14,980
|
|
|
(1,478
|
)
|
|
15,833
|
|
|
625
|
|
||||||
Wood Processing Systems
|
|
61,050
|
|
|
25,437
|
|
|
35,613
|
|
|
358
|
|
|
26,668
|
|
|
8,587
|
|
||||||
Fiber-based Products
|
|
9,427
|
|
|
8,012
|
|
|
1,415
|
|
|
—
|
|
|
—
|
|
|
1,415
|
|
||||||
|
|
$
|
365,893
|
|
|
$
|
313,885
|
|
|
$
|
52,008
|
|
|
$
|
(1,120
|
)
|
|
$
|
42,501
|
|
|
$
|
10,627
|
|
|
|
Nine Months Ended
|
||||
|
|
September 30,
2017 |
|
October 1,
2016 |
||
Gross Profit Margin:
|
|
|
|
|
||
Papermaking Systems
|
|
47.1
|
%
|
|
45.7
|
%
|
Wood Processing Systems
|
|
37.1
|
%
|
|
41.7
|
%
|
Fiber-based Products
|
|
50.1
|
%
|
|
45.7
|
%
|
|
|
45.5
|
%
|
|
45.3
|
%
|
Exhibit Number
|
|
|
|
Description of Exhibit
|
|
|
|
|
10.1
|
|
|
|
|
|
10.2
|
|
|
|
|
|
10.3
|
|
|
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document.*
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.*
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Calculation Linkbase Document.*
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Label Linkbase Document.*
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Presentation Linkbase Document.*
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Definition Linkbase Document.*
|
|
KADANT INC.
|
|
|
|
/s/ Michael J. McKenney
|
|
Michael J. McKenney
|
|
Senior Vice President and Chief Financial Officer
|
|
(Principal Financial Officer)
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the period ended
September 30, 2017
of Kadant Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
|
Date: November 8, 2017
|
/s/ Jonathan W. Painter
|
|
Jonathan W. Painter
|
|
Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the period ended
September 30, 2017
of Kadant Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
|
Date: November 8, 2017
|
/s/ Michael J. McKenney
|
|
Michael J. McKenney
|
|
Chief Financial Officer
|
|
|
Dated: November 8, 2017
|
/s/ Jonathan W. Painter
|
|
Jonathan W. Painter
|
|
Chief Executive Officer
|
|
|
|
/s/ Michael J. McKenney
|
|
Michael J. McKenney
|
|
Chief Financial Officer
|