kai-20220402

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 2, 2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to _________

Commission file number 001-11406

KADANT INC.

(Exact name of registrant as specified in its charter)


Delaware									52-1762325
(State or other jurisdiction of incorporation or organization)									(I.R.S. Employer Identification No.)

One Technology Park Drive

Westford, Massachusetts 01886

(Address of principal executive offices, including zip code)

(978) 776-2000

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $.01 par value

KAI

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 29, 2022, the registrant had 11,659,373 shares of common stock outstanding.

Table of Contents

Kadant Inc.

Quarterly Report on Form 10-Q

for the Period Ended April 2, 2022

Table of Contents


		Page
PART I: Financial Information

Item 1.	Financial Statements

	Condensed Consolidated Balance Sheet as of April 2, 2022 and January 1, 2022 (unaudited)	3

	Condensed Consolidated Statement of Income for the three-month periods ended April 2, 2022 and April 3, 2021 (unaudited)	4

	Condensed Consolidated Statement of Comprehensive Income for the three-month periods ended April 2, 2022 and April 3, 2021 (unaudited)	5

	Condensed Consolidated Statement of Cash Flows for the three-month periods ended April 2, 2022 and April 3, 2021 (unaudited)	6

	Condensed Consolidated Statement of Stockholders' Equity for the three-month periods ended April 2, 2022 and April 3, 2021 (unaudited)	7

	Notes to Condensed Consolidated Financial Statements (unaudited)	8

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	20

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27

Item 4.	Controls and Procedures	28

PART II: Other Information

Item 1A.	Risk Factors	28

Item 6.	Exhibits	30

Table of Contents

PART 1 – FINANCIAL INFORMATION

Item 1 – Financial Statements

KADANT INC.

Condensed Consolidated Balance Sheet

(Unaudited)


	April 2, 2022		January 1, 2022
(In thousands, except share and per share amounts)
Assets
Current Assets:
Cash and cash equivalents	$	86,192	$	91,186
Restricted cash (Note 1)	2,779		2,975
Accounts receivable, net of allowances of $3,067 and $2,735	125,919		117,209
Inventories	143,583		134,356
Contract assets	8,978		8,626
Other current assets	24,825		29,530
Total Current Assets	392,276		383,882
Property, Plant, and Equipment, net of accumulated depreciation of $116,911 and $114,032	105,851		107,989
Other Assets	59,299		44,111
Intangible Assets, Net	192,426		199,343
Goodwill	394,414		396,887
Total Assets	$	1,144,266	$	1,132,212

Liabilities and Stockholders' Equity
Current Liabilities:
Short-term obligations and current maturities of long-term obligations (Note 5)	$	4,893	$	5,356
Accounts payable	67,762		59,250
Accrued payroll and employee benefits	30,690		37,203
Customer deposits	62,432		59,262
Advanced billings	9,599		11,894
Other current liabilities	42,204		48,532
Total Current Liabilities	217,580		221,497
Long-Term Obligations (Note 5)	242,963		264,158
Long-Term Deferred Income Taxes	39,336		34,944
Other Long-Term Liabilities	44,649		45,997

Commitments and Contingencies (Note 11)

Stockholders' Equity:
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	112,651		115,888
Retained earnings	590,009		551,848
Treasury stock at cost, 2,964,786 and 3,003,419 shares	(72,649)		(73,596)
Accumulated other comprehensive items (Note 7)	(32,302)		(30,350)
Total Kadant Stockholders' Equity	597,855		563,936
Noncontrolling interest	1,883		1,680
Total Stockholders' Equity	599,738		565,616
Total Liabilities and Stockholders' Equity	$	1,144,266	$	1,132,212

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

KADANT INC.

Condensed Consolidated Statement of Income

(Unaudited)


	Three Months Ended
	April 2, 2022		April 3, 2021
(In thousands, except per share amounts)
Revenue (Notes 1 and 10)	$	226,480	$	172,463

Costs and Operating Expenses:
Cost of revenue	128,269		96,748
Selling, general, and administrative expenses	59,168		49,431
Research and development expenses	3,078		2,857
Gain on sale and other expense, net (Note 2)	(20,008)		—
	170,507		149,036
Operating Income	55,973		23,427
Interest Income	102		65
Interest Expense	(1,234)		(1,111)
Other Expense, Net	(22)		(24)
Income Before Provision for Income Taxes

SEC Form 10-Q filed by Kadant Inc