KAI
$84.74
Kadant
($1.19)
(1.38%)
Earnings Details
3rd Quarter September 2018
Monday, October 29, 2018 4:25:00 PM
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Summary

Kadant Beats but Guides Lower

Kadant (KAI) reported 3rd Quarter September 2018 earnings of $1.53 per share on revenue of $165.7 million. The consensus earnings estimate was $1.39 per share on revenue of $164.9 million. The Earnings Whisper number was $1.45 per share. Revenue grew 8.5% on a year-over-year basis.

The company said it expects 2018 earnings of $5.00 to $5.05 per share on revenue of $628.0 million to $632.0 million. The company's previous guidance was earnings of $5.00 to $5.10 per share on revenue of $630.0 million to $638.0 million and the current consensus earnings estimate is $5.06 per share on revenue of $637.0 million for the year ending December 31, 2018.

Kadant Inc develops, manufactures, and markets equipment and products for the papermaking, paper recycling and other process industries. It also designs and manufactures stranders and related equipment used in the production of oriented strand board.

Results
Reported Earnings
$1.53
Earnings Whisper
$1.45
Consensus Estimate
$1.39
Reported Revenue
$165.7 Mil
Revenue Estimate
$164.9 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Kadant Reports 2018 Third Quarter Results

Reports Record Revenue and Diluted EPS

WESTFORD, Mass., Oct. 29, 2018 (GLOBE NEWSWIRE) -- Kadant Inc. (NYSE: KAI) reported its financial results for the third quarter ended September 29, 2018.

Third Quarter 2018 Highlights

  • Revenue increased 8% to a record $166 million
  • GAAP diluted EPS increased 40% to a record $1.64
  • Adjusted diluted EPS increased 3% to a record $1.53
  • Net income increased 41% to $19 million
  • Adjusted EBITDA increased 11% to a record $34 million and represented 20% of revenue
  • Gross margin was 44.1%
  • Bookings increased 22% to $165 million
  • Backlog was $192 million
  • Cash flow from operations was $17 million

Note: Adjusted diluted EPS, adjusted EBITDA, and adjusted EBITDA margin are non-GAAP financial measures that exclude certain items as detailed later in this press release under the heading “Use of Non-GAAP Financial Measures.”

Management Commentary
“The record-setting pace we set in the first half of 2018 continued into the third quarter,” said Jonathan Painter, president and chief executive officer. “Strong internal growth and excellent execution led to record revenue and diluted EPS. Capacity build-outs at mills in Asia and strong demand in North America, particularly for our Fluid-Handling and Stock-Preparation product lines, led this growth. Our bookings increased 22 percent due almost entirely to internal growth, contributing to our near-record backlog of $192 million at the end of the third quarter. Our operating units executed extremely well this quarter resulting in record adjusted EBITDA, representing 20 percent of revenue.”

Third Quarter 2018 Results
Revenue increased eight percent to a record $165.7 million compared to the third quarter of 2017, including $0.9 million from an acquisition and a $3.8 million decrease from the unfavorable effect of foreign currency translation. Excluding the impact of the acquisition and foreign currency translation, revenue increased 10 percent compared to the third quarter of 2017. Gross margin was 44.1 percent. Net income increased 41 percent to $18.8 million, or $1.64 per diluted share, compared to $13.3 million, or $1.17 per diluted share, in the third quarter of 2017. Adjusted diluted EPS increased three percent to $1.53 compared to $1.49 in the third quarter of 2017. Adjusted diluted EPS excludes a $0.14 discrete tax benefit and $0.03 of restructuring costs in the third quarter of 2018 and $0.32 of acquisition-related costs in the third quarter of 2017.

Adjusted EBITDA increased 11 percent to a record $33.5 million compared to $30.1 million in the third quarter of 2017. Adjusted EBITDA excludes $0.4 million of restructuring costs in the third quarter of 2018 and $4.9 million of acquisition-related costs in the third quarter of 2017. Cash flows from operations increased 144 percent to $17.0 million compared to $7.0 million in the third quarter of 2017. Bookings increased 22 percent to $165.0 million compared to $135.5 million in the third quarter of 2017, including $1.2 million from an acquisition and a $3.8 million decrease from the unfavorable effect of foreign currency translation. Excluding the impact of the acquisition and foreign currency translation, bookings increased 24 percent compared to the third quarter of 2017.

Summary and Outlook
“Our strong performance in the first three quarters of 2018 has positioned us for another record year of financial performance,” Mr. Painter continued. “However, the timing of capital bookings and shipments as well as some modest currency headwinds have caused us to revise our previous guidance.

“For 2018, we now expect to report full year revenue of $628 to $632 million, revised from our previous guidance of $630 to $638 million. We expect to achieve GAAP diluted EPS of $4.93 to $4.98 in 2018, revised from our previous guidance of $4.89 to $4.99. The revised 2018 guidance includes a pre-tax curtailment loss of $1.4 million, or $0.09 per diluted share, related to the termination of defined benefit plans at one of our U.S. operations. The revised 2018 guidance also includes pre-tax restructuring costs of $1.7 million, or $0.11 per diluted share, pre-tax amortization expense associated with acquired backlog of $0.3 million, or $0.02 per diluted share, and a discrete tax benefit of $1.7 million, or $0.15 per diluted share. Excluding these items, we expect adjusted diluted EPS of $5.00 to $5.05 for 2018, revised from our previous guidance of $5.00 to $5.10.

“For the fourth quarter of 2018, we expect GAAP diluted EPS of $1.24 to $1.29 on revenue of $158 to $162 million. The fourth quarter guidance includes the pre-tax curtailment loss of $1.4 million, or $0.09 per diluted share. Excluding the curtailment loss, we expect adjusted diluted EPS of $1.33 to $1.38 in the fourth quarter of 2018.”

Conference Call
Kadant will hold a webcast with a slide presentation for investors on Tuesday, October 30, 2018, at 11:00 a.m. eastern time to discuss its third quarter performance, as well as future expectations. To access the webcast, including the slideshow and accompanying audio, go to www.kadant.com and click on “Investors.” To listen to the webcast via teleconference, call 888-326-8410 within the U.S., or +1-704-385-4884 outside the U.S. and reference participant passcode 8097465. Prior to the call, our earnings release and the slides used in the webcast presentation will be filed with the Securities and Exchange Commission and will be available at www.sec.gov. An archive of the webcast presentation will be available on our website until November 30, 2018.

Shortly after the webcast, Kadant will post its updated general investor presentation incorporating the third quarter results on its website at www.kadant.com under the “Investors” section.

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 decreases in revenue excluding the effect of acquisitions and foreign currency translation, adjusted operating income, adjusted net income, adjusted diluted earnings per share (EPS), earnings before interest, taxes, depreciation, and amortization (EBITDA), adjusted EBITDA, and adjusted EBITDA margin. 

We believe these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our core business, operating results, or future outlook. We believe that the inclusion of such measures helps investors gain an understanding of our underlying operating performance and future prospects, consistent with how management measures and forecasts our performance, especially when comparing such results to previous periods or forecasts and to the performance of our competitors. Such measures are also used by us in our financial and operating decision-making and for compensation purposes. We also believe this information is responsive to investors' requests and gives them an additional measure of our performance.
           
The non-GAAP financial measures included in this press release are not meant to be considered superior to or a substitute for the results of operations prepared in accordance with GAAP. In addition, the non-GAAP financial measures included in this press release have limitations associated with their use as compared to the most directly comparable GAAP measures, in that they may be different from, and therefore not comparable to, similar measures used by other companies.

Revenue included $0.9 million and $64.6 million from acquisitions in the third quarter and first nine months of 2018, respectively. Revenue also included $3.8 million of unfavorable and $7.6 million of favorable foreign currency translation effect in the third quarter and first nine months of 2018, respectively. We present increases or decreases in revenue excluding the effect of acquisitions and foreign currency translation to provide investors insight into underlying revenue trends.
                       
Our non-GAAP financial measures exclude restructuring costs, acquisition costs, amortization expense related to acquired backlog and profit in inventory and a discrete tax benefit. These items are excluded as they are not indicative of our core operating results and are not comparable to other periods, which have differing levels of incremental costs or income or none at all.

Third Quarter
Adjusted operating income, adjusted EBITDA, and adjusted EBITDA margin exclude:

  • Pre-tax restructuring costs of $0.4 million in 2018.
  • Pre-tax acquisition costs of $0.6 million in 2017.
  • Pre-tax expense related to acquired profit in inventory and backlog of $4.3 million in 2017.

Adjusted net income and adjusted diluted EPS exclude:

  • After-tax restructuring costs of $0.3 million ($0.4 million net of tax of $0.1 million) in 2018.
  • A discrete tax benefit of $1.5 million in 2018 related to the reversal of tax reserves associated with uncertain tax positions covering multiple tax years.
  • After-tax acquisition costs of $0.4 million ($0.6 million net of tax of $0.2 million) in 2017.
  • After-tax expense related to acquired profit in inventory and backlog of $3.2 million ($4.3 million net of tax of $1.1 million) in 2017.

First Nine Months
Adjusted operating income, adjusted EBITDA, and adjusted EBITDA margin exclude:

  • Pre-tax restructuring costs of $1.7 million in 2018.
  • Pre-tax expense related to acquired backlog of $0.3 million in 2018.
  • Pre-tax acquisition costs of $5.0 million in 2017.
  • Pre-tax expense related to acquired profit in inventory and backlog of $4.3 million in 2017.

Adjusted net income and adjusted diluted EPS exclude:

  • After-tax restructuring costs of $1.3 million ($1.7 million net of tax of $0.4 million) in 2018.
  • After-tax expense related to acquired backlog of $0.2 million ($0.3 million net of tax of $0.1 million) in 2018.
  • A discrete tax benefit of $1.7 million in 2018.
  • After-tax acquisition costs of $4.3 million ($5.0 million net of tax of $0.7 million) in 2017.
  • After-tax expense related to acquired profit in inventory and backlog of $3.2 million ($4.3 million net of tax of $1.1 million) in 2017.

Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in this press release.

            
 Financial Highlights (unaudited)        
 (In thousands, except per share amounts and percentages)        
            
    Three Months Ended Nine Months Ended 
 Consolidated Statement of Income (a)Sept. 29, 2018 Sept. 30, 2017 Sept. 29, 2018 Sept. 30, 2017 
 Revenues$  165,745  $  152,794  $  469,851  $  365,893  
 Costs and Operating Expenses:        
  Cost of revenues   92,652     88,139     262,515     199,369  
  Selling, general, and administrative expenses   42,888     42,346     133,796     115,936  
  Research and development expenses   2,452     2,635     8,049     7,004  
  Restructuring costs   378     -      1,717     -   
      138,370     133,120     406,077     322,309  
 Operating Income   27,375     19,674     63,774     43,584  
 Interest Income   30     94     335     300  
 Interest Expense   (1,738)    (1,282)    (5,320)    (2,022) 
 Other Expense, Net   (245)    (216)    (736)    (637) 
 Income Before Provision for Income Taxes   25,422     18,270     58,053     41,225  
 Provision for Income Taxes   6,443     4,860     15,575     10,550  
            
 Net Income   18,979     13,410     42,478     30,675  
            
 Net Income Attributable to Noncontrolling Interest   (195)    (125)    (487)    (343) 
 Net Income Attributable to Kadant$  18,784  $  13,285  $  41,991  $  30,332  
 Earnings per Share Attributable to Kadant:        
   Basic$  1.69  $  1.21  $  3.79  $  2.76  
   Diluted$  1.64  $  1.17  $  3.69  $  2.69  
            
 Weighted Average Shares:        
   Basic   11,101     11,004     11,078     10,986  
   Diluted   11,421     11,344     11,388     11,282  
            
    Three Months Ended Three Months Ended 
 Adjusted Net Income and Adjusted Diluted EPS (b)Sept. 29, 2018 Sept. 29, 2018 Sept. 30, 2017 Sept. 30, 2017 
            
 Net Income and Diluted EPS Attributable to Kadant, as Reported$  18,784  $  1.64  $  13,285  $  1.17  
 Adjustments for the Following:        
  Restructuring Costs, Net of Tax   287     0.03     -     -  
  Acquisition Costs, Net of Tax   -     -     441     0.04  
  Amortization of Acquired Profit in Inventory and Backlog, Net of Tax   -     -     3,191     0.28  
  Discrete Tax Items   (1,542)    (0.14)    -     -  
 Adjusted Net Income and Adjusted Diluted EPS $  17,529  $  1.53  $  16,917  $  1.49  
            
    Nine Months Ended Nine Months Ended 
    Sept. 29, 2018 Sept. 29, 2018 Sept. 30, 2017 Sept. 30, 2017 
            
 Net Income and Diluted EPS Attributable to Kadant, as Reported$  41,991  $  3.69  $  30,332  $  2.69  
 Adjustments for the Following:        
  Restructuring Costs, Net of Tax   1,308     0.11     -     -  
  Acquisition Costs, Net of Tax   -     -     4,274     0.38  
  Amortization of Acquired Profit in Inventory and Backlog, Net of Tax   189     0.02     3,191     0.28  
  Discrete Tax Items   (1,672)    (0.15)    -     -  
 Adjusted Net Income and Adjusted Diluted EPS$  41,816  $  3.67  $  37,797  $  3.35  
            
           Increase  
           (Decrease)  
           Excluding  
    Three Months Ended  Increase
(Decrease)
 Acquisitions 
 Revenues by Product LineSept. 29, 2018 Sept. 30, 2017  and FX (b,c) 
            
 Stock-Preparation$  62,983  $  52,065  $  10,918  $  11,603  
 Fluid-Handling   33,083     28,532     4,551     4,451  
 Doctoring, Cleaning, & Filtration   30,704     30,538     166     1,059  
  Papermaking Systems   126,770     111,135     15,635     17,113  
  Wood Processing Systems   37,042     39,714     (2,672)    (1,295) 
  Fiber-Based Products   1,933     1,945     (12)    (12) 
    $  165,745  $  152,794  $  12,951  $  15,806  
            
           Increase  
           (Decrease)  
           Excluding  
    Nine Months Ended Increase  Acquisitions 
    Sept. 29, 2018 Sept. 30, 2017  and FX (b,c) 
            
 Stock-Preparation$  164,842  $  139,396  $  25,446  $  19,732  
 Fluid-Handling   98,500     73,099     25,401     11,614  
 Doctoring, Cleaning, & Filtration   87,469     82,921     4,548     3,679  
  Papermaking Systems   350,811     295,416     55,395     35,025  
  Wood Processing Systems   109,335     61,050     48,285     (3,513) 
  Fiber-Based Products   9,705     9,427     278     278  
    $  469,851  $  365,893  $  103,958  $  31,790  
            
           Increase  
           (Decrease)  
           Excluding  
    Three Months Ended  Increase
(Decrease) 
 Acquisitions 
 Revenues by Geography (d)Sept. 29, 2018 Sept. 30, 2017  and FX (b,c) 
            
 North America$  74,089  $  68,369  $  5,720  $  5,867  
 Europe   44,912     46,475     (1,563)    (639) 
 Asia   32,887     25,215     7,672     8,359  
 Rest of World   13,857     12,735     1,122     2,219  
    $  165,745  $  152,794  $  12,951  $  15,806  
            
           Increase  
           (Decrease)  
           Excluding  
    Nine Months Ended Increase Acquisitions 
    Sept. 29, 2018 Sept. 30, 2017  and FX (b,c) 
            
 North America$  227,080  $  170,092  $  56,988  $  10,131  
 Europe   131,437     113,178     18,259     523  
 Asia   78,537     53,658     24,879     21,649  
 Rest of World   32,797     28,965     3,832     (513) 
    $  469,851  $  365,893  $  103,958  $  31,790  
            
           Increase  
           Excluding  
    Three Months Ended Increase Acquisitions 
 Bookings by Product LineSept. 29, 2018 Sept. 30, 2017  and FX (c) 
            
 Stock-Preparation$  69,341  $  50,797  $  18,544  $  19,348  
 Fluid-Handling   29,671     28,426     1,245     732  
 Doctoring, Cleaning, & Filtration   27,788     27,656     132     967  
  Papermaking Systems   126,800     106,879     19,921     21,047  
  Wood Processing Systems   36,080     26,548     9,532     11,022  
  Fiber-Based Products   2,120     2,030     90     90  
    $  165,000  $  135,457  $  29,543  $  32,159  
            
           Increase  
           (Decrease)  
           Excluding  
    Nine Months Ended Increase Acquisitions 
    Sept. 29, 2018 Sept. 30, 2017  and FX (c) 
            
 Stock-Preparation$  187,073  $  149,285  $  37,788  $  31,027  
 Fluid-Handling   107,363     79,752     27,611     11,581  
 Doctoring, Cleaning, & Filtration   86,603     86,354     249     (780) 
  Papermaking Systems   381,039     315,391     65,648     41,828  
  Wood Processing Systems   133,213     50,172     83,041     18,489  
  Fiber-Based Products   9,088     8,999     89     89  
    $  523,340  $  374,562  $  148,778  $  60,406  
            
    Three Months Ended Nine Months Ended 
 Business Segment Information (a)Sept. 29, 2018 Sept. 30, 2017 Sept. 29, 2018 Sept. 30, 2017 
            
 Gross Margin:        
   Papermaking Systems 44.6%  45.6%  45.1%  47.1% 
   Wood Processing Systems 42.6%  33.5%  40.4%  37.1% 
   Fiber-Based Products 36.6%  35.7%  50.1%  50.1% 
     44.1%  42.3%  44.1%  45.5% 
            
 Operating Income:        
   Papermaking Systems$  25,919  $  21,684  $  61,402  $  53,247  
   Wood Processing Systems   8,704     4,418     21,380     6,511  
   Corporate and Other   (7,248)    (6,428)    (19,008)    (16,174) 
    $  27,375  $  19,674  $  63,774  $  43,584  
            
 Adjusted Operating Income (b, e):        
   Papermaking Systems$  26,297  $  21,962  $  63,119  $  53,840  
   Wood Processing Systems   8,704     9,043     21,632     15,238  
   Corporate and Other   (7,248)    (6,428)    (19,008)    (16,174) 
    $  27,753  $  24,577  $  65,743  $  52,904  
            
 Capital Expenditures:        
   Papermaking Systems$  1,348  $  3,790  $  9,837  $  6,567  
   Wood Processing Systems   1,026     1,358     2,586     1,649  
   Corporate and Other   232     135     394     502  
    $  2,606  $  5,283  $  12,817  $  8,718  
            
    Three Months Ended Nine Months Ended 
 Cash Flow and Other DataSept. 29, 2018 Sept. 30, 2017 Sept. 29, 2018 Sept. 30, 2017 
            
 Cash Provided by Operations $  16,979  $  6,952  $  52,550  $  32,328  
 Depreciation and Amortization Expense   5,796     6,525     17,739     13,056  
            
 Balance Sheet Data    Sept. 29, 2018 Dec. 30, 2017 
            
 Assets        
 Cash, Cash Equivalents, and Restricted Cash    $  58,059  $  76,846  
 Accounts Receivable, net       96,326     89,624  
 Inventories       91,736     84,933  
 Unbilled Revenues       8,315     2,374  
 Property, Plant and Equipment, net       79,458     79,723  
 Intangible Assets       119,246     133,036  
 Goodwill       262,081     268,001  
 Other Assets       26,541     26,557  
        $  741,762  $  761,094  
 Liabilities and Stockholders' Equity        
 Accounts Payable    $  34,761  $  35,461  
 Debt Obligations       189,052     237,011  
 Capital Lease Obligations       4,563     5,069  
 Other Liabilities       154,947     151,049  
  Total Liabilities       383,323     428,590  
  Stockholders' Equity       358,439     332,504  
        $  741,762  $  761,094  
            
 Adjusted Operating Income and Adjusted EBITDAThree Months Ended Nine Months Ended 
 Reconciliation (a, b)Sept. 29, 2018 Sept. 30, 2017 Sept. 29, 2018 Sept. 30, 2017 
            
 Consolidated        
   Net Income Attributable to Kadant$  18,784  $  13,285  $  41,991  $  30,332  
   Net Income Attributable to Noncontrolling Interest   195     125     487     343  
   Provision for Income Taxes   6,443     4,860     15,575     10,550  
   Interest Expense, Net   1,708     1,188     4,985     1,722  
   Other Expense, Net   245     216     736     637  
   Operating Income   27,375     19,674     63,774     43,584  
   Restructuring Costs   378     -     1,717     -  
   Acquisition Costs   -     585     -     5,002  
   Acquired Backlog Amortization (f)   -     958     252     958  
   Acquired Profit in Inventory (g)   -     3,360     -     3,360  
   Adjusted Operating Income (b)   27,753     24,577     65,743     52,904  
   Depreciation and Amortization   5,796     5,567     17,487     12,098  
   Adjusted EBITDA (b)$  33,549  $  30,144  $  83,230  $  65,002  
   Adjusted EBITDA Margin (b, h) 20.2%  19.7%  17.7%  17.8% 
            
 Papermaking Systems         
   Operating Income$  25,919  $  21,684  $  61,402  $  53,247  
   Restructuring costs    378     -     1,717     -  
   Acquisition Costs   -     172     -     487  
   Acquired Profit in Inventory (g)   -     106     -     106  
   Adjusted Operating Income (b)   26,297     21,962     63,119     53,840  
   Depreciation and Amortization   3,132     2,894     9,407     8,105  
   Adjusted EBITDA (b)$  29,429  $  24,856  $  72,526  $  61,945  
            
 Wood Processing Systems        
   Operating Income$  8,704  $  4,418  $  21,380  $  6,511  
   Acquisition Costs   -     413     -     4,515  
   Acquired Backlog Amortization (f)   -     958     252     958  
   Acquired Profit in Inventory (g)   -     3,254     -     3,254  
   Adjusted Operating Income (b)   8,704     9,043     21,632     15,238  
   Depreciation and Amortization   2,505     2,527     7,585     3,547  
   Adjusted EBITDA (b)$  11,209  $  11,570  $  29,217  $  18,785  
            
 Corporate and Other        
   Operating Loss$  (7,248) $  (6,428) $  (19,008) $  (16,174) 
   Depreciation and Amortization   159     146     495     446  
   EBITDA (b)$  (7,089) $  (6,282) $  (18,513) $  (15,728) 
            
            
 (a) Prior period amounts have been restated to conform to the current period presentation as a result of the adoption of the Financial Accounting Standards Board's Accounting Standards Update No. 2017-07. 
            
 (b) Represents a non-GAAP financial measure.  
            
 (c) Represents the increase (decrease) resulting from the exclusion of acquisitions and from the conversion of current period amounts reported in local currencies into U.S. dollars at the exchange rate of the prior period compared to the U.S. dollar amount reported in the prior period. 
        
 (d) Geographic revenues are attributed to regions based on customer location. 
       
 (e)See reconciliation to the most directly comparable GAAP financial measure under "Adjusted Operating Income and Adjusted EBITDA Reconciliation." 
            
 (f) Represents intangible amortization expense associated with acquired backlog. 
      
 (g)Represents expense within cost of revenues associated with acquired profit in inventory. 
      
 (h) Calculated as adjusted EBITDA divided by revenue in each period. 
     

About Kadant 
Kadant Inc. is a global supplier of high-value, critical components and engineered systems used in process industries worldwide. The Company’s products, technologies, and services play an integral role in enhancing process efficiency, optimizing energy utilization, and maximizing productivity in resource-intensive industries. Kadant is based in Westford, Massachusetts, with 2,500 employees in 20 countries worldwide. For more information, visit www.kadant.com.

Safe Harbor Statement
The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that involve a number of risks and uncertainties, including forward-looking statements about our future financial and operating performance, demand for our products, and economic and industry outlook. These forward-looking statements represent Kadant’s expectations as of the date of this press release. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results to differ materially from these forward-looking statements as a result of various important factors, including those set forth under the heading "Risk Factors" in Kadant’s annual report on Form 10-K for the year ended December 30, 2017 and subsequent filings with the Securities and Exchange Commission. These include risks and uncertainties relating to adverse changes in global and local economic conditions; the variability and difficulty in accurately predicting revenues from large capital equipment and systems projects; our customers’ ability to obtain financing for capital equipment projects; the variability and uncertainties in sales of capital equipment in China; international sales and operations; the oriented strand board market and levels of residential construction activity; development and use of digital media; currency fluctuations; price increases or shortages of raw materials; dependence on certain suppliers; our acquisition strategy; failure of our information systems or breaches of data security; changes in government regulations and policies and compliance with laws; our internal growth strategy; competition; soundness of suppliers and customers; changes in our tax provision or exposure to additional tax liabilities; our ability to successfully manage our manufacturing operations; disruption in production; future restructurings; economic conditions and regulatory changes caused by the United Kingdom’s likely exit from the European Union; our debt obligations; restrictions in our credit agreement; loss of key personnel; protection of patents and proprietary rights; fluctuations in our share price; soundness of financial institutions; environmental laws and regulations; anti-takeover provisions; and reliance on third-party research.

Contacts
Investor Contact Information:
Michael McKenney, 978-776-2000
mike.mckenney@kadant.com 
or
Media Contact Information:
Wes Martz, 269-278-1715
wes.martz@kadant.com 

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Source: Kadant Inc