Company Quick10K Filing
Kadant
Price87.39 EPS5
Shares11 P/E16
MCap1,002 P/FCF17
Net Debt267 EBIT85
TEV1,269 TEV/EBIT15
TTM 2019-09-28, in MM, except price, ratios
10-Q 2020-06-27 Filed 2020-08-05
10-Q 2020-03-28 Filed 2020-05-06
10-K 2019-12-28 Filed 2020-02-25
10-Q 2019-09-28 Filed 2019-11-06
10-Q 2019-06-29 Filed 2019-08-07
10-Q 2019-03-30 Filed 2019-05-08
10-K 2018-12-29 Filed 2019-02-26
10-Q 2018-09-29 Filed 2018-11-07
10-Q 2018-06-30 Filed 2018-08-08
10-Q 2018-03-31 Filed 2018-05-09
10-K 2017-12-30 Filed 2018-02-27
10-Q 2017-09-30 Filed 2017-11-08
10-Q 2017-07-01 Filed 2017-08-09
10-Q 2017-04-01 Filed 2017-05-10
10-K 2016-12-31 Filed 2017-03-15
10-Q 2016-10-01 Filed 2016-11-09
10-Q 2016-07-02 Filed 2016-08-10
10-Q 2016-04-02 Filed 2016-05-11
10-K 2016-01-02 Filed 2016-03-16
10-Q 2015-10-03 Filed 2015-11-12
10-Q 2015-07-04 Filed 2015-08-12
10-Q 2015-04-04 Filed 2015-05-13
10-K 2015-01-03 Filed 2015-03-18
10-Q 2014-09-27 Filed 2014-11-05
10-Q 2014-06-28 Filed 2014-08-06
10-Q 2014-03-29 Filed 2014-05-07
10-K 2013-12-28 Filed 2014-03-12
10-Q 2013-09-28 Filed 2013-11-07
10-Q 2013-06-29 Filed 2013-08-07
10-Q 2013-03-30 Filed 2013-05-08
10-K 2012-12-29 Filed 2013-03-13
10-Q 2012-09-29 Filed 2012-11-07
10-Q 2012-06-30 Filed 2012-08-08
10-Q 2012-03-31 Filed 2012-05-09
10-K 2011-12-31 Filed 2012-03-14
10-Q 2011-10-26 Filed 2011-11-09
10-Q 2011-07-02 Filed 2011-08-11
10-Q 2011-04-02 Filed 2011-05-11
10-K 2011-01-01 Filed 2011-03-17
10-Q 2010-10-02 Filed 2010-11-10
10-Q 2010-07-03 Filed 2010-08-12
10-Q 2010-04-03 Filed 2010-05-12
10-K 2010-01-02 Filed 2010-03-16
8-K 2020-07-28 Earnings, Regulation FD, Exhibits
8-K 2020-06-18
8-K 2020-05-12
8-K 2020-04-29
8-K 2020-04-22
8-K 2020-02-12
8-K 2019-10-29
8-K 2019-07-30
8-K 2019-05-17
8-K 2019-04-29
8-K 2019-03-06
8-K 2019-02-13
8-K 2018-12-31
8-K 2018-12-14
8-K 2018-12-09
8-K 2018-12-05
8-K 2018-10-29
8-K 2018-07-30
8-K 2018-07-06
8-K 2018-05-16
8-K 2018-04-30
8-K 2018-04-30
8-K 2018-03-07
8-K 2018-02-15
8-K 2018-02-15

KAI 10Q Quarterly Report

Part 1 - Financial Information
Item 1 - Financial Statements
Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3 - Quantitative and Qualitative Disclosures About Market Risk
Item 4 - Controls and Procedures
Part II - Other Information
Item 1A - Risk Factors
Item 6 - Exhibits
EX-31.1 kaiform10q2q2020ex311.htm
EX-31.2 kaiform10q2q2020ex312.htm
EX-32 kaiform10q2q2020ex32.htm

Kadant Earnings 2020-06-27

Balance SheetIncome StatementCash Flow
1.00.80.60.40.20.02012201420172020
Assets, Equity
0.20.20.10.10.00.02012201420172020
Rev, G Profit, Net Income
0.30.20.1-0.1-0.2-0.32012201420172020
Ops, Inv, Fin

Document
false--01-02Q220200000886346us-gaap:AccountingStandardsUpdate201602Member9530900099366000269800029140004350000.230.460.240.480.010.011500000001500000001462415914624159P10YP5Y3900014300030001220002000100000200000.010.01500000050000000045600032148883127565 0000886346 2019-12-29 2020-06-27 0000886346 2020-07-24 0000886346 2020-06-27 0000886346 2019-12-28 0000886346 2020-03-29 2020-06-27 0000886346 2019-03-31 2019-06-29 0000886346 2018-12-30 2019-06-29 0000886346 2018-12-29 0000886346 2019-06-29 0000886346 us-gaap:NoncontrollingInterestMember 2019-12-28 0000886346 us-gaap:TreasuryStockMember 2019-12-28 0000886346 us-gaap:AdditionalPaidInCapitalMember 2020-03-28 0000886346 us-gaap:NoncontrollingInterestMember 2019-12-29 2020-06-27 0000886346 us-gaap:RetainedEarningsMember 2020-03-29 2020-06-27 0000886346 us-gaap:CommonStockMember 2020-03-28 0000886346 us-gaap:CommonStockMember 2020-06-27 0000886346 us-gaap:NoncontrollingInterestMember 2020-06-27 0000886346 us-gaap:AdditionalPaidInCapitalMember 2020-03-29 2020-06-27 0000886346 us-gaap:TreasuryStockMember 2020-03-28 0000886346 us-gaap:NoncontrollingInterestMember 2020-03-29 2020-06-27 0000886346 us-gaap:TreasuryStockMember 2020-06-27 0000886346 us-gaap:CommonStockMember 2019-12-28 0000886346 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-27 0000886346 us-gaap:RetainedEarningsMember 2020-03-28 0000886346 us-gaap:AdditionalPaidInCapitalMember 2019-12-28 0000886346 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-28 0000886346 us-gaap:RetainedEarningsMember 2020-06-27 0000886346 us-gaap:NoncontrollingInterestMember 2020-03-28 0000886346 us-gaap:RetainedEarningsMember 2019-12-29 2020-06-27 0000886346 us-gaap:AdditionalPaidInCapitalMember 2020-06-27 0000886346 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-29 2020-06-27 0000886346 us-gaap:TreasuryStockMember 2020-03-29 2020-06-27 0000886346 us-gaap:AdditionalPaidInCapitalMember 2019-12-29 2020-06-27 0000886346 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-28 0000886346 us-gaap:TreasuryStockMember 2019-12-29 2020-06-27 0000886346 us-gaap:RetainedEarningsMember 2019-12-28 0000886346 2020-03-28 0000886346 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-29 2020-06-27 0000886346 us-gaap:RetainedEarningsMember 2018-12-29 0000886346 us-gaap:RetainedEarningsMember 2019-06-29 0000886346 us-gaap:NoncontrollingInterestMember 2018-12-30 2019-06-29 0000886346 us-gaap:AdditionalPaidInCapitalMember 2019-06-29 0000886346 2019-03-30 0000886346 us-gaap:CommonStockMember 2019-03-30 0000886346 us-gaap:NoncontrollingInterestMember 2019-03-30 0000886346 us-gaap:NoncontrollingInterestMember 2019-06-29 0000886346 us-gaap:TreasuryStockMember 2019-03-31 2019-06-29 0000886346 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-30 2019-06-29 0000886346 us-gaap:TreasuryStockMember 2019-06-29 0000886346 us-gaap:CommonStockMember 2018-12-29 0000886346 us-gaap:AdditionalPaidInCapitalMember 2019-03-30 0000886346 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 2019-06-29 0000886346 us-gaap:NoncontrollingInterestMember 2019-03-31 2019-06-29 0000886346 us-gaap:CommonStockMember 2019-06-29 0000886346 us-gaap:AdditionalPaidInCapitalMember 2018-12-29 0000886346 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-30 0000886346 us-gaap:RetainedEarningsMember 2019-03-30 0000886346 us-gaap:TreasuryStockMember 2018-12-30 2019-06-29 0000886346 us-gaap:TreasuryStockMember 2019-03-30 0000886346 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember 2018-12-29 0000886346 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-29 0000886346 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 2019-06-29 0000886346 us-gaap:RetainedEarningsMember 2019-03-31 2019-06-29 0000886346 srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember us-gaap:RetainedEarningsMember 2018-12-29 0000886346 us-gaap:AdditionalPaidInCapitalMember 2018-12-30 2019-06-29 0000886346 us-gaap:TreasuryStockMember 2018-12-29 0000886346 us-gaap:RetainedEarningsMember 2018-12-30 2019-06-29 0000886346 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-29 0000886346 us-gaap:NoncontrollingInterestMember 2018-12-29 0000886346 2017-12-31 2018-12-29 0000886346 2020-06-28 2020-06-27 0000886346 kai:PartsandConsumablesMember 2018-12-30 2019-06-29 0000886346 kai:CapitalMember 2020-03-29 2020-06-27 0000886346 srt:AsiaMember 2018-12-30 2019-06-29 0000886346 srt:EuropeMember 2018-12-30 2019-06-29 0000886346 kai:PartsandConsumablesMember 2019-03-31 2019-06-29 0000886346 srt:EuropeMember 2019-03-31 2019-06-29 0000886346 srt:NorthAmericaMember 2019-03-31 2019-06-29 0000886346 srt:AsiaMember 2019-12-29 2020-06-27 0000886346 kai:CapitalMember 2019-03-31 2019-06-29 0000886346 kai:RestofWorldMember 2020-03-29 2020-06-27 0000886346 srt:NorthAmericaMember 2018-12-30 2019-06-29 0000886346 srt:AsiaMember 2020-03-29 2020-06-27 0000886346 kai:PartsandConsumablesMember 2020-03-29 2020-06-27 0000886346 srt:EuropeMember 2019-12-29 2020-06-27 0000886346 kai:RestofWorldMember 2018-12-30 2019-06-29 0000886346 kai:CapitalMember 2019-12-29 2020-06-27 0000886346 kai:RestofWorldMember 2019-03-31 2019-06-29 0000886346 srt:NorthAmericaMember 2019-12-29 2020-06-27 0000886346 srt:AsiaMember 2019-03-31 2019-06-29 0000886346 kai:RestofWorldMember 2019-12-29 2020-06-27 0000886346 srt:NorthAmericaMember 2020-03-29 2020-06-27 0000886346 srt:EuropeMember 2020-03-29 2020-06-27 0000886346 kai:PartsandConsumablesMember 2019-12-29 2020-06-27 0000886346 kai:CapitalMember 2018-12-30 2019-06-29 0000886346 us-gaap:TransferredAtPointInTimeMember 2020-03-29 2020-06-27 0000886346 us-gaap:TransferredOverTimeMember 2020-03-29 2020-06-27 0000886346 us-gaap:TransferredOverTimeMember 2018-12-30 2019-06-29 0000886346 us-gaap:TransferredAtPointInTimeMember 2019-12-29 2020-06-27 0000886346 us-gaap:TransferredAtPointInTimeMember 2019-03-31 2019-06-29 0000886346 us-gaap:TransferredAtPointInTimeMember 2018-12-30 2019-06-29 0000886346 us-gaap:TransferredOverTimeMember 2019-12-29 2020-06-27 0000886346 us-gaap:TransferredOverTimeMember 2019-03-31 2019-06-29 0000886346 us-gaap:CustomerRelationshipsMember 2020-06-27 0000886346 2018-12-30 2019-12-28 0000886346 us-gaap:CustomerRelationshipsMember 2018-12-30 2019-12-28 0000886346 us-gaap:CustomerRelationshipsMember 2019-12-28 0000886346 us-gaap:TradeNamesMember 2019-12-28 0000886346 us-gaap:TradeNamesMember 2020-06-27 0000886346 us-gaap:TradeNamesMember 2018-12-30 2019-12-28 0000886346 us-gaap:IntellectualPropertyMember 2019-12-28 0000886346 us-gaap:TradeNamesMember 2019-12-29 2020-06-27 0000886346 us-gaap:IntellectualPropertyMember 2020-06-27 0000886346 us-gaap:CustomerRelationshipsMember 2019-12-29 2020-06-27 0000886346 us-gaap:TradeNamesMember 2019-12-28 0000886346 us-gaap:IntellectualPropertyMember 2019-12-29 2020-06-27 0000886346 us-gaap:OtherIntangibleAssetsMember 2020-06-27 0000886346 us-gaap:TradeNamesMember 2020-06-27 0000886346 us-gaap:OtherIntangibleAssetsMember 2019-12-28 0000886346 us-gaap:OtherIntangibleAssetsMember 2018-12-30 2019-12-28 0000886346 us-gaap:TradeNamesMember 2018-12-30 2019-12-28 0000886346 us-gaap:IntellectualPropertyMember 2018-12-30 2019-12-28 0000886346 us-gaap:TradeNamesMember 2019-12-29 2020-06-27 0000886346 us-gaap:OtherIntangibleAssetsMember 2019-12-29 2020-06-27 0000886346 us-gaap:OperatingSegmentsMember kai:MaterialHandlingSystemsMember 2020-06-27 0000886346 us-gaap:OperatingSegmentsMember kai:MaterialHandlingSystemsMember 2019-12-28 0000886346 us-gaap:OperatingSegmentsMember kai:MaterialHandlingSystemsMember 2019-12-29 2020-06-27 0000886346 us-gaap:OperatingSegmentsMember kai:IndustrialProcessingMember 2019-12-29 2020-06-27 0000886346 us-gaap:OperatingSegmentsMember kai:IndustrialProcessingMember 2019-12-28 0000886346 us-gaap:OperatingSegmentsMember kai:FlowControlMember 2019-12-29 2020-06-27 0000886346 us-gaap:OperatingSegmentsMember kai:FlowControlMember 2020-06-27 0000886346 us-gaap:OperatingSegmentsMember kai:FlowControlMember 2019-12-28 0000886346 us-gaap:OperatingSegmentsMember kai:IndustrialProcessingMember 2020-06-27 0000886346 kai:CogentIndustrialTechnologiesMember 2020-06-01 2020-06-01 0000886346 kai:CogentIndustrialTechnologiesMember us-gaap:CustomerRelationshipsMember 2020-06-01 2020-06-01 0000886346 kai:CompanyinAustriaMember us-gaap:TechnologyBasedIntangibleAssetsMember 2020-03-29 2020-06-27 0000886346 us-gaap:EmployeeSeveranceMember 2019-12-28 0000886346 us-gaap:EmployeeSeveranceMember 2019-12-29 2020-06-27 0000886346 us-gaap:EmployeeSeveranceMember 2020-06-27 0000886346 us-gaap:EmployeeSeveranceMember kai:FlowControlMember 2020-03-29 2020-06-27 0000886346 country:CA kai:IndustrialProcessingMember 2020-03-29 2020-06-27 0000886346 kai:UnitedStatesandBrazilMember kai:FlowControlMember 2020-03-29 2020-06-27 0000886346 us-gaap:RestrictedStockUnitsRSUMember 2019-12-29 2020-06-27 0000886346 us-gaap:RestrictedStockUnitsRSUMember 2019-03-31 2019-06-29 0000886346 us-gaap:RestrictedStockUnitsRSUMember 2018-12-30 2019-06-29 0000886346 us-gaap:RestrictedStockUnitsRSUMember 2020-03-29 2020-06-27 0000886346 kai:CommercialRealEstateLoanMember us-gaap:SecuredDebtMember 2018-12-29 0000886346 srt:MaximumMember kai:TwoThousandSeventeenCreditAgreementMember us-gaap:LineOfCreditMember us-gaap:BaseRateMember 2017-12-31 2018-12-29 0000886346 kai:EuroDenominatedBorrowingMember us-gaap:LineOfCreditMember 2020-06-27 0000886346 kai:TwoThousandSeventeenCreditAgreementMember us-gaap:LineOfCreditMember 2018-12-29 0000886346 kai:SaleLeasebackArrangementMember us-gaap:CapitalLeaseObligationsMember 2020-06-27 0000886346 kai:DebtCovenantPeriodOneMember kai:TwoThousandSeventeenCreditAgreementMember us-gaap:LineOfCreditMember 2019-12-29 2020-06-27 0000886346 us-gaap:LineOfCreditMember 2020-06-27 0000886346 kai:NotePurchaseAgreementMember us-gaap:SeniorNotesMember 2018-12-29 0000886346 srt:MaximumMember kai:TwoThousandSeventeenCreditAgreementMember us-gaap:LineOfCreditMember us-gaap:LondonInterbankOfferedRateLIBORMember 2017-12-31 2018-12-29 0000886346 kai:DebtCovenantPeriodTwoMember kai:TwoThousandSeventeenCreditAgreementMember us-gaap:LineOfCreditMember 2019-12-29 2020-06-27 0000886346 kai:TwoThousandSeventeenCreditAgreementMember us-gaap:LineOfCreditMember 2017-12-31 2018-12-29 0000886346 kai:CommercialRealEstateLoanMember us-gaap:SecuredDebtMember 2020-06-18 0000886346 kai:TwoThousandSeventeenCreditAgreementMember us-gaap:LineOfCreditMember kai:FederalFundsRateMember 2017-12-31 2018-12-29 0000886346 srt:MinimumMember kai:NotePurchaseAgreementMember us-gaap:SeniorNotesMember 2019-12-29 2020-06-27 0000886346 srt:MinimumMember kai:TwoThousandSeventeenCreditAgreementMember us-gaap:LineOfCreditMember us-gaap:LondonInterbankOfferedRateLIBORMember 2017-12-31 2018-12-29 0000886346 kai:CommercialRealEstateLoanMember us-gaap:SecuredDebtMember 2017-12-31 2018-12-29 0000886346 kai:CanadianDenominatedBorrowingMember us-gaap:LineOfCreditMember 2020-06-27 0000886346 kai:CommercialRealEstateLoanMember us-gaap:SecuredDebtMember us-gaap:SubsequentEventMember 2020-07-20 2020-07-20 0000886346 kai:TwoThousandSeventeenCreditAgreementMember us-gaap:LineOfCreditMember kai:ThirtyDayLondonInterbankOfferedRateLIBORMember 2017-12-31 2018-12-29 0000886346 srt:MinimumMember kai:TwoThousandSeventeenCreditAgreementMember us-gaap:LineOfCreditMember us-gaap:BaseRateMember 2017-12-31 2018-12-29 0000886346 kai:CommercialRealEstateLoanMember 2020-06-27 0000886346 us-gaap:SeniorNotesMember 2019-12-28 0000886346 kai:OtherBorrowingsMember 2020-06-27 0000886346 us-gaap:LineOfCreditMember 2019-12-28 0000886346 kai:TermLoanMember 2019-12-28 0000886346 kai:TermLoanMember 2020-06-27 0000886346 us-gaap:SeniorNotesMember 2020-06-27 0000886346 kai:OtherBorrowingsMember 2019-12-28 0000886346 srt:DirectorMember us-gaap:RestrictedStockUnitsRSUMember us-gaap:ShareBasedPaymentArrangementNonemployeeMember 2020-05-12 2020-05-12 0000886346 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2019-12-29 2020-06-27 0000886346 us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-12-30 2019-06-29 0000886346 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2018-12-30 2019-06-29 0000886346 us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-12-29 2020-06-27 0000886346 country:US us-gaap:PensionPlansDefinedBenefitMember 2018-12-30 2019-06-29 0000886346 country:US us-gaap:PensionPlansDefinedBenefitMember 2019-03-31 2019-06-29 0000886346 us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-03-31 2019-06-29 0000886346 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2020-03-29 2020-06-27 0000886346 us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2020-03-29 2020-06-27 0000886346 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2019-03-31 2019-06-29 0000886346 2019-12-29 2020-03-28 0000886346 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2019-12-29 2020-06-27 0000886346 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-03-31 2019-06-29 0000886346 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-12-29 2020-06-27 0000886346 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-03-31 2019-06-29 0000886346 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2020-03-29 2020-06-27 0000886346 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2018-12-30 2019-06-29 0000886346 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2019-12-29 2020-06-27 0000886346 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-12-29 2020-06-27 0000886346 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-12-30 2019-06-29 0000886346 us-gaap:ForeignExchangeForwardMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-03-31 2019-06-29 0000886346 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-12-30 2019-06-29 0000886346 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2019-03-31 2019-06-29 0000886346 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2018-12-30 2019-06-29 0000886346 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-03-29 2020-06-27 0000886346 us-gaap:InterestRateSwapMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-03-31 2019-06-29 0000886346 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-03-29 2020-06-27 0000886346 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2020-03-29 2020-06-27 0000886346 us-gaap:ForeignExchangeForwardMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-12-30 2019-06-29 0000886346 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2020-03-29 2020-06-27 0000886346 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2019-03-31 2019-06-29 0000886346 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2018-12-30 2019-06-29 0000886346 us-gaap:InterestRateSwapMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-12-30 2019-06-29 0000886346 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2019-12-29 2020-06-27 0000886346 us-gaap:ForeignExchangeForwardMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-12-29 2020-06-27 0000886346 us-gaap:InterestRateSwapMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-03-29 2020-06-27 0000886346 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2019-03-31 2019-06-29 0000886346 us-gaap:ForeignExchangeForwardMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-03-29 2020-06-27 0000886346 us-gaap:InterestRateSwapMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-12-29 2020-06-27 0000886346 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-12-29 2020-06-27 0000886346 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2019-12-29 2020-06-27 0000886346 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-12-28 0000886346 us-gaap:AccumulatedTranslationAdjustmentMember 2019-12-29 2020-06-27 0000886346 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-06-27 0000886346 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2020-06-27 0000886346 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2019-12-28 0000886346 us-gaap:AccumulatedTranslationAdjustmentMember 2020-06-27 0000886346 us-gaap:AccumulatedTranslationAdjustmentMember 2019-12-28 0000886346 us-gaap:ForeignExchangeForwardMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-06-27 0000886346 us-gaap:InterestRateSwapMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-06-27 0000886346 us-gaap:InterestRateSwapMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-12-28 0000886346 us-gaap:InterestRateSwapMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-12-29 2020-06-27 0000886346 us-gaap:ForeignExchangeForwardMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-12-28 0000886346 us-gaap:ForeignExchangeForwardMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-12-29 2020-06-27 0000886346 us-gaap:OtherNoncurrentLiabilitiesMember kai:SwapAgreement2018Member us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-28 0000886346 us-gaap:OtherCurrentLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2020-06-27 0000886346 us-gaap:OtherCurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-28 0000886346 us-gaap:OtherCurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2020-06-27 0000886346 us-gaap:OtherCurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2019-12-28 0000886346 us-gaap:OtherCurrentAssetsMember kai:SwapAgreement2015Member us-gaap:DesignatedAsHedgingInstrumentMember 2020-06-27 0000886346 us-gaap:OtherNoncurrentLiabilitiesMember kai:SwapAgreement2018Member us-gaap:DesignatedAsHedgingInstrumentMember 2020-06-27 0000886346 us-gaap:OtherCurrentLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2019-12-28 0000886346 us-gaap:OtherCurrentAssetsMember kai:SwapAgreement2015Member us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-28 0000886346 us-gaap:OtherCurrentAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-06-27 0000886346 us-gaap:OtherCurrentLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-28 0000886346 us-gaap:OtherCurrentLiabilitiesMember us-gaap:ForeignExchangeForwardMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-06-27 0000886346 kai:SwapAgreement2018Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-29 0000886346 kai:SwapAgreement2015Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2016-01-02 0000886346 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-06-27 0000886346 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-12-28 0000886346 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-06-27 0000886346 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-12-28 0000886346 us-gaap:SubsequentEventMember 2020-07-01 2020-07-31 0000886346 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-28 0000886346 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-28 0000886346 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-28 0000886346 us-gaap:FairValueMeasurementsRecurringMember 2019-12-28 0000886346 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-06-27 0000886346 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-06-27 0000886346 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-06-27 0000886346 us-gaap:FairValueMeasurementsRecurringMember 2020-06-27 0000886346 us-gaap:OperatingSegmentsMember kai:IndustrialProcessingMember 2020-03-29 2020-06-27 0000886346 us-gaap:OperatingSegmentsMember kai:FlowControlMember 2020-03-29 2020-06-27 0000886346 us-gaap:OperatingSegmentsMember kai:MaterialHandlingSystemsMember 2018-12-30 2019-06-29 0000886346 us-gaap:OperatingSegmentsMember kai:MaterialHandlingSystemsMember 2019-03-31 2019-06-29 0000886346 us-gaap:CorporateNonSegmentMember 2019-03-31 2019-06-29 0000886346 us-gaap:OperatingSegmentsMember kai:FlowControlMember 2019-03-31 2019-06-29 0000886346 us-gaap:OperatingSegmentsMember kai:FlowControlMember 2018-12-30 2019-06-29 0000886346 us-gaap:OperatingSegmentsMember kai:IndustrialProcessingMember 2018-12-30 2019-06-29 0000886346 us-gaap:CorporateNonSegmentMember 2019-12-29 2020-06-27 0000886346 us-gaap:OperatingSegmentsMember kai:MaterialHandlingSystemsMember 2020-03-29 2020-06-27 0000886346 us-gaap:OperatingSegmentsMember kai:IndustrialProcessingMember 2019-03-31 2019-06-29 0000886346 us-gaap:CorporateNonSegmentMember 2018-12-30 2019-06-29 0000886346 us-gaap:CorporateNonSegmentMember 2020-03-29 2020-06-27 0000886346 kai:TwoThousandSeventeenCreditAgreementMember us-gaap:LineOfCreditMember us-gaap:SubsequentEventMember 2020-07-20 kai:Employee iso4217:USD xbrli:shares xbrli:pure kai:Segment iso4217:USD xbrli:shares


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 June 27, 2020
OR
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 July 24, 2020, the registrant had 11,500,187 shares of common stock outstanding.




Kadant Inc.
Quarterly Report on Form 10-Q
for the Period Ended June 27, 2020
Table of Contents

 
 
Page
PART I: Financial Information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PART II: Other Information
 
 
 
 
 
 




PART 1 – FINANCIAL INFORMATION

Item 1 – Financial Statements

KADANT INC.
Condensed Consolidated Balance Sheet
(Unaudited)
 
 
June 27,
2020
 
December 28,
2019
(In thousands, except share and per share amounts)
 
 
Assets
 
 
 
 
Current Assets:
 
 
 
 
Cash and cash equivalents
 
$
57,499

 
$
66,786

Restricted cash
 
3,450

 
1,487

   Accounts receivable, net of allowances of $2,914 and $2,698
 
89,393

 
95,740

Inventories
 
109,663

 
102,715

Unbilled revenue
 
10,444

 
13,162

Other current assets
 
17,202

 
17,686

Total Current Assets
 
287,651

 
297,576

Property, Plant, and Equipment, net of accumulated depreciation of $99,366 and $95,309
 
82,242

 
86,032

Other Assets
 
40,092

 
45,851

Intangible Assets, Net (Note 1)
 
167,314

 
173,896

Goodwill (Note 1)
 
337,993

 
336,032

Total Assets
 
$
915,292

 
$
939,387

 
 
 
 
 
Liabilities and Stockholders' Equity
 
 
 
 
Current Liabilities:
 
 
 
 
Short-term obligations and current maturities of long-term obligations (Note 6)
 
$
20,387

 
$
2,851

Accounts payable
 
39,922

 
45,852

Accrued payroll and employee benefits
 
25,388

 
31,968

Customer deposits
 
22,716

 
24,012

Advanced billings
 
6,110

 
11,280

Other current liabilities
 
33,863

 
30,206

Total Current Liabilities
 
148,386

 
146,169

Long-Term Obligations (Note 6)
 
262,760

 
298,174

Other Long-Term Liabilities
 
63,787

 
67,965

 
 
 
 
 
Commitments and Contingencies (Note 13)
 


 


 
 
 
 
 
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
 
107,202

 
106,698

Retained earnings
 
453,874

 
435,249

Treasury stock at cost, 3,127,565 and 3,214,888 shares
 
(76,638
)
 
(78,778
)
Accumulated other comprehensive items (Note 9)
 
(45,863
)
 
(37,620
)
Total Kadant Stockholders' Equity
 
438,721

 
425,695

Noncontrolling interest
 
1,638

 
1,384

Total Stockholders' Equity
 
440,359

 
427,079

Total Liabilities and Stockholders' Equity
 
$
915,292

 
$
939,387

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

3



KADANT INC.
Condensed Consolidated Statement of Income
(Unaudited)
 
 
Three Months Ended
 
Six Months Ended
 
 
June 27,
2020
 
June 29,
2019
 
June 27,
2020
 
June 29,
2019
(In thousands, except per share amounts)
 
 
 
 
Revenue (Notes 1 and 12)
 
$
152,860

 
$
177,165

 
$
311,987

 
$
348,481

 
 
 
 
 
 
 
 
 
Costs and Operating Expenses:
 
 

 
 

 
 
 
 
Cost of revenue
 
86,412

 
102,794

 
177,216

 
203,595

Selling, general, and administrative expenses
 
45,073

 
48,467

 
90,665

 
97,786

Research and development expenses
 
2,798

 
2,762

 
5,874

 
5,383

Restructuring costs (Note 3)
 
456

 

 
456

 

 
 
134,739

 
154,023

 
274,211

 
306,764

 
 
 
 
 
 
 
 
 
Operating Income
 
18,121

 
23,142

 
37,776

 
41,717

 
 
 
 
 
 
 
 
 
Interest Income
 
37

 
59

 
88

 
115

Interest Expense
 
(1,931
)
 
(3,573
)
 
(4,390
)
 
(7,077
)
Other Expense, Net
 
(31
)
 
(99
)
 
(63
)
 
(198
)
 
 
 
 
 
 
 
 
 
Income Before Provision for Income Taxes
 
16,196

 
19,529

 
33,411

 
34,557

Provision for Income Taxes (Note 5)
 
4,474

 
3,128

 
9,033

 
7,091

Net Income
 
11,722

 
16,401

 
24,378

 
27,466

 
 
 
 
 
 
 
 
 
Net Income Attributable to Noncontrolling Interest
 
(115
)
 
(97
)
 
(240
)
 
(262
)
 
 
 
 
 
 
 
 
 
Net Income Attributable to Kadant
 
$
11,607

 
$
16,304

 
$
24,138

 
$
27,204

 
 
 
 
 
 
 
 
 
Earnings per Share Attributable to Kadant (Note 4)
 
 

 
 

 
 
 
 
Basic
 
$
1.01

 
$
1.46

 
$
2.11

 
$
2.44

Diluted
 
$
1.00

 
$
1.42

 
$
2.09

 
$
2.38

 
 
 
 
 
 
 
 
 
Weighted Average Shares (Note 4)
 
 

 
 

 
 
 
 
Basic
 
11,482

 
11,194

 
11,457

 
11,164

Diluted
 
11,552

 
11,448

 
11,530

 
11,416


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






4



KADANT INC.
Condensed Consolidated Statement of Comprehensive Income
(Unaudited)
 
 
Three Months Ended
 
Six Months Ended
 
 
June 27,
2020
 
June 29,
2019
 
June 27,
2020
 
June 29,
2019
(In thousands)
 
 
 
 
Net Income
 
$
11,722

 
$
16,401

 
$
24,378

 
$
27,466

Other Comprehensive Items:
 
 

 
 

 
 

 
 

Foreign currency translation adjustment
 
4,742

 
1,953

 
(7,832
)
 
1,488

Pension and other post-retirement liability adjustments, net (net of tax provision of $–, $2, $20 and $10)
 
(2
)
 
7

 
48

 
28

Effect of other post-retirement plan settlement
 

 

 
(119
)
 

Deferred loss on cash flow hedges (net of tax benefit of $3, $39, $122 and $143)
 
(24
)
 
(164
)
 
(326
)
 
(401
)
Total other comprehensive items
 
4,716

 
1,796

 
(8,229
)
 
1,115

Comprehensive Income
 
16,438

 
18,197

 
16,149

 
28,581

Comprehensive Income Attributable to Noncontrolling Interest
 
(140
)
 
(120
)
 
(254
)
 
(252
)
Comprehensive Income Attributable to Kadant
 
$
16,298

 
$
18,077

 
$
15,895

 
$
28,329


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

5



KADANT INC.
Condensed Consolidated Statement of Cash Flows
(Unaudited)
 
 
Six Months Ended
 
 
June 27,
2020
 
June 29,
2019
(In thousands)
 
 
Operating Activities
 
 
 
 
Net income attributable to Kadant
 
$
24,138

 
$
27,204

Net income attributable to noncontrolling interest
 
240

 
262

Net income
 
24,378

 
27,466

Adjustments to reconcile net income to net cash provided by operating activities:
 
 

 
 

Depreciation and amortization
 
15,174

 
16,541

Stock-based compensation expense
 
3,516

 
3,467

Provision for losses on accounts receivable
 
303

 
39

Gain on sale of property, plant, and equipment
 

 
(189
)
Other items, net
 
(565
)
 
851

Changes in current assets and liabilities, net of effects of acquisitions:
 
 

 
 

Accounts receivable
 
4,761

 
(2,855
)
Unbilled revenue
 
2,706

 
2,131

Inventories
 
(9,372
)
 
(9,326
)
Other current assets
 
1,572

 
(3,417
)
Accounts payable
 
(5,032
)
 
3,419

Other current liabilities
 
(9,233
)
 
(5,639
)
Net cash provided by operating activities
 
28,208

 
32,488

 
 
 
 
 
Investing Activities
 
 

 
 

Acquisitions, net of cash acquired (Note 2)
 
(7,066
)
 
(176,855
)
Purchases of property, plant, and equipment
 
(3,597
)
 
(4,143
)
Proceeds from sale of property, plant, and equipment
 
11

 
368

Net cash used in investing activities
 
(10,652
)
 
(180,630
)
 
 
 
 
 
Financing Activities
 
 

 
 

Repayment of short- and long-term obligations
 
(24,160
)
 
(24,562
)
Proceeds from issuance of long-term obligations
 
7,000

 
191,000

Dividends paid
 
(5,381
)
 
(5,014
)
Tax withholding payments related to stock-based compensation
 
(2,318
)
 
(2,670
)
Proceeds from issuance of Company common stock
 
1,445

 
1,697

Payment of debt issuance costs
 

 
(52
)
Net cash (used in) provided by financing activities
 
(23,414
)
 
160,399

 
 
 
 
 
Exchange Rate Effect on Cash, Cash Equivalents, and Restricted Cash
 
(1,466
)
 
(236
)
 
 
 
 
 
(Decrease) Increase in Cash, Cash Equivalents, and Restricted Cash
 
(7,324
)
 
12,021

Cash, Cash Equivalents, and Restricted Cash at Beginning of Period
 
68,273

 
46,117

Cash, Cash Equivalents, and Restricted Cash at End of Period
 
$
60,949

 
$
58,138


See Note 1, under the heading Supplemental Cash Flow Information for further details.

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

6



KADANT INC.
Condensed Consolidated Statement of Stockholders' Equity
(Unaudited)
 
 
Three Months Ended June 27, 2020
(In thousands, except share and per 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 March 28, 2020
 
14,624,159

 
$
146

 
$
105,457

 
$
445,027

 
3,154,644

 
$
(77,302
)
 
$
(50,554
)
 
$
1,498

 
$
424,272

  Net income
 

 

 

 
11,607

 

 

 

 
115

 
11,722

Dividend declared – Common Stock, $0.24 per share
 

 

 

 
(2,760
)
 

 

 

 

 
(2,760
)
  Activity under stock plans
 

 

 
1,745

 

 
(27,079
)
 
664

 

 

 
2,409

  Other comprehensive items
 

 

 

 

 

 

 
4,691

 
25

 
4,716

Balance at June 27, 2020
 
14,624,159

 
$
146

 
$
107,202

 
$
453,874

 
3,127,565

 
$
(76,638
)
 
$
(45,863
)
 
$
1,638

 
$
440,359

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 27, 2020
(In thousands, except share and per 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 December 28, 2019
 
14,624,159

 
$
146

 
$
106,698

 
$
435,249

 
3,214,888

 
$
(78,778
)
 
$
(37,620
)
 
$
1,384

 
$
427,079

  Net income
 

 

 

 
24,138

 

 

 

 
240

 
24,378

Dividends declared – Common Stock, $0.48 per share
 

 

 

 
(5,513
)
 

 

 

 

 
(5,513
)
  Activity under stock plans
 

 

 
504

 

 
(87,323
)
 
2,140

 

 

 
2,644

  Other comprehensive items
 

 

 

 

 

 

 
(8,243
)
 
14

 
(8,229
)
Balance at June 27, 2020
 
14,624,159

 
$
146

 
$
107,202

 
$
453,874

 
3,127,565

 
$
(76,638
)
 
$
(45,863
)
 
$
1,638

 
$
440,359



 
 
Three Months Ended June 29, 2019
(In thousands, except share and per 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 March 30, 2019
 
14,624,159

 
$
146

 
$
102,780

 
$
401,891

 
3,449,728

 
$
(84,532
)
 
$
(40,024
)
 
$
1,735

 
$
381,996

  Net income
 

 

 

 
16,304

 

 

 

 
97

 
16,401

Dividend declared – Common Stock, $0.23 per share
 

 

 

 
(2,590
)
 

 

 

 

 
(2,590
)
  Activity under stock plans
 

 

 
987

 

 
(80,424
)
 
1,970

 

 

 
2,957

  Other comprehensive items
 

 

 

 

 

 

 
1,773

 
23

 
1,796

Balance at June 29, 2019
 
14,624,159

 
$
146

 
$
103,767

 
$
415,605

 
3,369,304

 
$
(82,562
)
 
$
(38,251
)
 
$
1,855

 
$
400,560

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 29, 2019
(In thousands, except share and per 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 December 29, 2018
 
14,624,159

 
$
146

 
$
104,731

 
$
393,578

 
3,514,163

 
$
(86,111
)
 
$
(39,376
)
 
$
1,603

 
$
374,571

  Net income
 

 

 

 
27,204

 

 

 

 
262

 
27,466

Adoption of ASU No. 2016-02, Leases
 

 

 

 
(17
)
 

 

 

 

 
(17
)
Dividends declared – Common Stock, $0.46 per share
 

 

 

 
(5,160
)
 

 

 

 

 
(5,160
)
  Activity under stock plans
 

 

 
(964
)
 

 
(144,859
)
 
3,549

 

 

 
2,585

  Other comprehensive items
 

 

 

 

 

 

 
1,125

 
(10
)
 
1,115

Balance at June 29, 2019
 
14,624,159

 
$
146

 
$
103,767

 
$
415,605

 
3,369,304

 
$
(82,562
)
 
$
(38,251
)
 
$
1,855

 
$
400,560


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


7

KADANT INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)



1.    Nature of Operations and Summary of Significant Accounting Policies

Nature of Operations
Kadant Inc. was incorporated in Delaware in November 1991 and trades on the New York Stock Exchange under the ticker symbol "KAI."
Kadant Inc. (together with its subsidiaries, the Company) is a global supplier of high-value, critical components and engineered systems used in process industries worldwide. Its products, technologies, and services play an integral role in enhancing process efficiency, optimizing energy utilization, and maximizing productivity in resource-intensive industries.
    
COVID-19
On March 11, 2020, the World Health Organization designated the novel coronavirus a global pandemic (COVID-19), and a national emergency was subsequently declared by the U.S. government. The pandemic has negatively affected the global economy, disrupted global supply chains, and resulted in significant travel and transport restrictions, which have adversely affected the Company’s bookings and financial results. The impact of the COVID-19 pandemic, including the resulting economic impact, continues to evolve and the Company is closely monitoring its impact on all aspects of its business.

Interim Financial Statements
The interim condensed consolidated financial statements and related notes presented have been prepared by the Company, are unaudited, and, in the opinion of management, reflect all adjustments of a normal recurring nature necessary for a fair statement of the Company's financial position at June 27, 2020, its results of operations, comprehensive income, and stockholders' equity for the three- and six-month periods ended June 27, 2020 and June 29, 2019, and its cash flows for the six-month periods ended June 27, 2020 and June 29, 2019. Interim results are not necessarily indicative of results for a full year or for any other interim period.
The condensed consolidated balance sheet presented as of December 28, 2019 has been derived from the consolidated financial statements contained in the Company's Annual Report on Form 10-K for the fiscal year ended December 28, 2019. The condensed consolidated financial statements and related notes are presented as permitted by the rules and regulations of the Securities and Exchange Commission (SEC) for Form 10-Q and do not contain certain information included in the annual consolidated financial statements and related notes of the Company. The condensed consolidated financial statements and notes included herein should be read in conjunction with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the fiscal year ended December 28, 2019, filed with the SEC.

Financial Statement Presentation
In the first quarter of 2020, the Company realigned its business segments into three new reportable operating segments: Flow Control, Industrial Processing, and Material Handling. The Company previously reported its financial results by combining its operating entities into three reportable operating segments: Papermaking Systems, Wood Processing Systems, and Material Handling Systems, and a separate product line, Fiber-based Products. Financial information for 2019 has been recast to conform to the new segment presentation. See Note 12, Business Segment Information, for further detail regarding the Company's segments.

Use of Estimates and Critical Accounting Policies
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Although the Company makes every effort to ensure the accuracy of the estimates and assumptions used in the preparation of its condensed consolidated financial statements or in the application of accounting policies, if business conditions were different, or if the Company were to use different estimates and assumptions, it is possible that materially different amounts could be reported in the Company's condensed consolidated financial statements.
 

8

KADANT INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)

1.    Nature of Operations and Summary of Significant Accounting Policies (continued)

Notes 1 and 3 to the consolidated financial statements in the Company's Annual Report on Form 10-K for the fiscal year ended December 28, 2019 describe the significant accounting estimates and policies used in preparation of the consolidated financial statements. There have been no material changes in the Company’s significant accounting policies during the six months ended June 27, 2020, except that the Company no longer considers its policy with respect to accounting for pension benefits to be a critical accounting policy due to the settlement of its U.S. pension plan in December 2019.

Supplemental Cash Flow Information
 
 
Six Months Ended
(In thousands)
 
June 27,
2020
 
June 29,
2019
Cash Paid for Interest
 
$
4,186

 
$
6,108

Cash Paid for Income Taxes, Net of Refunds
 
$
7,036

 
$
12,975

 
 
 
 
 
Non-Cash Investing Activities:
 
 
 
 
Fair value of assets acquired
 
$
9,164

 
$
209,350

Cash paid for acquired businesses
 
(7,537
)
 
(179,286
)
Liabilities Assumed of Acquired Businesses
 
$
1,627

 
$
30,064

 
 
 
 
 
Non-cash additions to property, plant, and equipment
 
$
150

 
$
306

 
 
 
 
 
Non-Cash Financing Activities:
 
 

 
 

Issuance of Company common stock upon vesting of restricted stock units
 
$
4,027

 
$
3,743

Dividends declared but unpaid
 
$
2,760

 
$
2,590



Restricted Cash
The Company's restricted cash serves as collateral for potential claims in China and bank guarantees associated with providing assurance to customers that the Company will fulfill certain customer obligations entered into in the normal course of business. The majority of the bank guarantees will expire over the next twelve months.
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company's condensed consolidated balance sheet that are shown in aggregate in the accompanying condensed consolidated statement of cash flows:
(In thousands)
 
June 27,
2020
 
June 29,
2019
 
December 28,
2019
 
December 29,
2018
Cash and cash equivalents
 
$
57,499

 
$
57,049

 
$
66,786

 
$
45,830

Restricted cash
 
3,450

 
1,089

 
1,487

 
287

Total Cash, Cash Equivalents, and Restricted Cash
 
$
60,949

 
$
58,138

 
$
68,273

 
$
46,117



Inventories
The components of inventories are as follows:
 
 
June 27,
2020
 
December 28,
2019
(In thousands)
 
 
Raw Materials
 
$
49,174

 
$
49,332

Work in Process
 
15,765

 
15,344

Finished Goods
 
44,724

 
38,039

 
 
$
109,663

 
$
102,715



9

KADANT INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)

1.    Nature of Operations and Summary of Significant Accounting Policies (continued)

Intangible Assets, Net
Acquired intangible assets by major asset class are as follows:
(In thousands)
 
Gross
 
Accumulated
Amortization
 
Currency
Translation
 
Net
June 27, 2020
 
 
 
 
 
 
 
 
Definite-Lived
 
 
 
 
 
 
 
 
Customer relationships
 
$
174,423

 
$
(58,560
)
 
$
(5,161
)
 
$
110,702

Product technology