kai-20230401

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 1, 2023


☐			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 28, 2023, the registrant had 11,703,481 shares of common stock outstanding.

Table of Contents

Kadant Inc.

Quarterly Report on Form 10-Q

for the Period Ended April 1, 2023

Table of Contents


		Page
PART I: Financial Information

Item 1.	Financial Statements

	Condensed Consolidated Balance Sheet as of April 1, 202 3 and December 3 1, 2022 (unaudited)	3

	Condensed Consolidated Statement of Income for the three -month periods ended April 1, 202 3 and April 2, 202 2 (unaudited)	4

	Condensed Consolidated Statement of Comprehensive Income for the three -month periods ended April 1, 202 3 and April 2, 202 2 (unaudited)	5

	Condensed Consolidated Statement of Cash Flows for the three -month periods ended April 1 , 202 3 and April 2, 202 2 (unaudited)	6

	Condensed Consolidated Statement of Stockholders' Equity for the three -month periods ended April 1, 202 3 and April 2, 202 2 (unaudited)	7

	Notes to Condensed Consolidated Financial Statements (unaudited)	8

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	21

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28

Item 4.	Controls and Procedures	29

PART II: Other Information

Item 1A.	Risk Factors	29

Item 6.	Exhibits	29

Table of Contents

PART 1 – FINANCIAL INFORMATION

Item 1 – Financial Statements

KADANT INC.

Condensed Consolidated Balance Sheet

(Unaudited)


	April 1, 2023		December 31, 2022
(In thousands, except share and per share amounts)
Assets
Current Assets:
Cash and cash equivalents	$	81,183	$	76,371
Restricted cash	4,324		3,354
Accounts receivable, net of allowances of $3,587 and $3,595	131,268		130,297
Inventories	179,199		163,672
Contract assets	12,389		14,898
Other current assets	41,743		26,818
Total Current Assets	450,106		415,410
Property, Plant, and Equipment, net of accumulated depreciation of $125,754 and $121,442	120,274		118,855
Other Assets	39,478		54,516
Intangible Assets, Net	171,396		175,645
Goodwill	387,890		385,455
Total Assets	$	1,169,144	$	1,149,881

Liabilities and Stockholders' Equity
Current Liabilities:
Short-term obligations and current maturities of long-term obligations (Note 5)	$	3,352	$	3,821
Accounts payable	57,939		58,060
Accrued payroll and employee benefits	30,336		35,672
Customer deposits	80,190		64,361
Advanced billings	10,219		7,966
Other current liabilities	43,811		43,581
Total Current Liabilities	225,847		213,461
Long-Term Obligations (Note 5)	178,555		197,340
Long-Term Deferred Income Taxes	39,672		38,745
Other Long-Term Liabilities	40,765		44,764

SEC Form 10-Q filed by Kadant Inc