kai-20240330

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 March 30, 2024


☐			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 26, 2024, the registrant had 11,742,946 shares of common stock outstanding.

Table of Contents

Kadant Inc.

Report on Form 10-Q

For the Quarterly Period Ended March 30, 2024

Table of Contents


		Page
PART I: Financial Information

Item 1.	Financial Statements (unaudited)

	Condensed Consolidated Balance Sheet as of March 30, 202 4 and December 3 0 , 202 3	3

	Condensed Consolidated Statement of Income for the three -month periods ended March 30, 202 4 and April 1, 202 3	4

	Condensed Consolidated Statement of Comprehensive Income for the three-month periods ended March 30, 202 4 and April 1, 202 3	5

	Condensed Consolidated Statement of Cash Flows for the three -month periods ended March 30, 202 4 and April 1, 202 3	6

	Condensed Consolidated Statement of Stockholders' Equity for the three -month periods ended March 30, 202 4 and April 1, 202 3	7

	Notes to Condensed Consolidated Financial Statements	8

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	23

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30

Item 4.	Controls and Procedures	31

PART II: Other Information

Item 1A.	Risk Factors	31

Item 5.	Other Information	31

Item 6.	Exhibits	32

Table of Contents

PART 1 – FINANCIAL INFORMATION

Item 1 – Financial Statements

KADANT INC.

Condensed Consolidated Balance Sheet

(Unaudited)


	March 30, 2024		December 30, 2023
(In thousands, except share and per share amounts)
Assets
Current Assets:
Cash and cash equivalents	$	81,440	$	103,832
Restricted cash	1,178		2,621
Accounts receivable, net of allowances of $4,419 and $4,090	149,586		133,929
Inventories	171,958		152,677
Contract assets	10,673		8,366
Other current assets	39,914		38,757
Total Current Assets	454,749		440,182
Property, Plant, and Equipment, net of accumulated depreciation of 135,032 and $132,846	170,834		140,504
Other Assets	50,095		43,609
Intangible Assets, Net (Notes 1 and 2)	273,831		159,286
Goodwill (Notes 1 and 2)	459,917		392,084
Total Assets	$	1,409,426	$	1,175,665

Liabilities and Stockholders' Equity
Current Liabilities:
Current maturities of long-term obligations (Note 6 )	$	3,243	$	3,209
Accounts payable	55,587		42,104
Accrued payroll and employee benefits	35,628		41,855
Customer deposits	65,536		62,641
Advanced billings	10,720		12,194
Other current liabilities	51,337		52,406
Total Current Liabilities	222,051		214,409
Long-Term Obligations (Note 6 )	306,773		107,666
Long-Term Deferred Income Taxes	40,972		36,398
Other Long-Term Liabilities	44,862		40,952

Commitments and Contingencies (Note 1 2 )

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	122,253		124,940
Retained earnings	784,062		763,131
Treasury stock at cost, 2,881,213 and 2,915,978 shares	(70,601)		(71,453)
Accumulated other comprehensive items (Note 8 )	(53,173)		(43,062)
Total Kadant Stockholders' Equity	782,687		773,702
Noncontrolling interests (Note 2)	12,081		2,538
Total Stockholders' Equity	794,768		776,240
Total Liabilities and Stockholders' Equity	$	1,409,426	$	1,175,665

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
	March 30, 2024		April 1, 2023
(In thousands, except per share amounts)
Revenue (Notes 1 and 1 1 )	$	248,975	$	229,758

Costs and Operating Expenses:
Cost of revenue	138,013		127,712
Selling, general, and administrative expenses	70,305		58,562
Research and development expenses	3,730		3,370

	212,048		189,644
Operating Income	36,927		40,114
Interest Income	611		299
Interest Expense	(4,669)		(2,370)
Other Expense, Net	(30)		(21)
Income Before Provision for Income Taxes	32,839		38,022
Provision for Income Taxes (Note 5 )	7,854		9,763
Net Income	24,985		28,259
Net Income Attributable to Noncontrolling Interests	(296)		(184)
Net Income Attributable to Kadant	$	24,689	$	28,075

Earnings per Share Attributable to Kadant (Note 4 )
Basic	$	2.11	$	2.40
Diluted	$	2.10	$	2.40

Weighted Average Shares (Note 4 )
Basic	11,724		11,681
Diluted	11,744		11,694

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

Table of Contents

KADANT INC.

Condensed Consolidated Statement of Comprehensive Income

(Unaudited)

Three Months Ended

March 30,
2024

April 1,
2023

(In thousands)

Net Income