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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Kadant Inc | NYSE:KAI | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.07 | -0.02% | 282.46 | 286.14 | 278.15 | 286.14 | 78,450 | 23:56:18 |
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the transition period from ________ to _________
|
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)
|
|
(Zip Code)
|
Large accelerated filer
o
|
|
Accelerated filer
x
|
Non-accelerated filer
o
|
|
Smaller reporting company
o
|
|
|
Emerging growth company
o
|
Class
|
|
Outstanding at April 28, 2017
|
Common Stock, $.01 par value
|
|
11,000,647
|
|
|
Page
|
PART I: Financial Information
|
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|
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PART II: Other Information
|
||
|
|
|
|
|
|
|
|
April 1,
2017 |
|
December 31,
2016 |
||||
(In thousands)
|
|
|
||||||
|
|
|
|
|
||||
Current Assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
71,540
|
|
|
$
|
71,487
|
|
Restricted cash (Note 1)
|
|
1,543
|
|
|
2,082
|
|
||
Accounts receivable, less allowances of $2,497 and $2,395 (Note 1)
|
|
71,926
|
|
|
65,963
|
|
||
Inventories (Note 1)
|
|
59,841
|
|
|
54,951
|
|
||
Unbilled contract costs and fees
|
|
4,262
|
|
|
3,068
|
|
||
Other current assets
|
|
13,037
|
|
|
9,799
|
|
||
Total Current Assets
|
|
222,149
|
|
|
207,350
|
|
||
|
|
|
|
|
||||
Property, Plant, and Equipment, at Cost
|
|
127,631
|
|
|
124,424
|
|
||
Less: accumulated depreciation and amortization
|
|
79,001
|
|
|
76,720
|
|
||
|
|
48,630
|
|
|
47,704
|
|
||
|
|
|
|
|
||||
Other Assets
|
|
12,421
|
|
|
11,452
|
|
||
|
|
|
|
|
||||
Intangible Assets, Net (Note 1)
|
|
51,816
|
|
|
52,730
|
|
||
|
|
|
|
|
||||
Goodwill (Note 1)
|
|
153,811
|
|
|
151,455
|
|
||
|
|
|
|
|
||||
Total Assets
|
|
$
|
488,827
|
|
|
$
|
470,691
|
|
|
|
April 1,
2017 |
|
December 31,
2016 |
||||
(In thousands, except share amounts)
|
|
|
||||||
|
|
|
|
|
||||
Current Liabilities:
|
|
|
|
|
||||
Current maturities of long-term obligations (Note 5)
|
|
$
|
655
|
|
|
$
|
643
|
|
Accounts payable
|
|
25,218
|
|
|
23,929
|
|
||
Customer deposits
|
|
25,337
|
|
|
21,168
|
|
||
Accrued payroll and employee benefits
|
|
17,231
|
|
|
20,508
|
|
||
Other current liabilities
|
|
22,175
|
|
|
22,665
|
|
||
Total Current Liabilities
|
|
90,616
|
|
|
88,913
|
|
||
|
|
|
|
|
||||
Long-Term Deferred Income Taxes
|
|
15,526
|
|
|
14,631
|
|
||
|
|
|
|
|
||||
Other Long-Term Liabilities
|
|
17,500
|
|
|
17,100
|
|
||
|
|
|
|
|
||||
Long-Term Obligations (Note 5)
|
|
69,895
|
|
|
65,768
|
|
||
|
|
|
|
|
||||
Commitments and Contingencies (Note 12)
|
|
|
|
|
|
|
||
|
|
|
|
|
||||
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
|
|
98,974
|
|
|
101,405
|
|
||
Retained earnings
|
|
327,691
|
|
|
321,050
|
|
||
Treasury stock at cost, 3,623,512 and 3,686,532 shares
|
|
(88,791
|
)
|
|
(90,335
|
)
|
||
Accumulated other comprehensive items (Note 8)
|
|
(44,542
|
)
|
|
(49,637
|
)
|
||
Total Kadant Stockholders' Equity
|
|
293,478
|
|
|
282,629
|
|
||
Noncontrolling interest
|
|
1,812
|
|
|
1,650
|
|
||
Total Stockholders' Equity
|
|
295,290
|
|
|
284,279
|
|
||
|
|
|
|
|
||||
Total Liabilities and Stockholders' Equity
|
|
$
|
488,827
|
|
|
$
|
470,691
|
|
|
|
Three Months Ended
|
||||||
|
|
April 1,
2017 |
|
April 2,
2016 |
||||
(In thousands, except per share amounts)
|
|
|
||||||
|
|
|
|
|
||||
Revenues (Note 11)
|
|
$
|
102,857
|
|
|
$
|
96,538
|
|
|
|
|
|
|
||||
Costs and Operating Expenses:
|
|
|
|
|
|
|
||
Cost of revenues
|
|
53,865
|
|
|
52,562
|
|
||
Selling, general, and administrative expenses
|
|
34,799
|
|
|
32,496
|
|
||
Research and development expenses
|
|
2,147
|
|
|
1,704
|
|
||
Other income
|
|
—
|
|
|
(317
|
)
|
||
|
|
90,811
|
|
|
86,445
|
|
||
|
|
|
|
|
||||
Operating Income
|
|
12,046
|
|
|
10,093
|
|
||
|
|
|
|
|
||||
Interest Income
|
|
104
|
|
|
55
|
|
||
Interest Expense
|
|
(348
|
)
|
|
(269
|
)
|
||
|
|
|
|
|
||||
Income Before Provision for Income Taxes
|
|
11,802
|
|
|
9,879
|
|
||
Provision for Income Taxes (Note 4)
|
|
2,735
|
|
|
2,888
|
|
||
|
|
|
|
|
||||
Net Income
|
|
9,067
|
|
|
6,991
|
|
||
|
|
|
|
|
||||
Net Income Attributable to Noncontrolling Interest
|
|
(116
|
)
|
|
(115
|
)
|
||
|
|
|
|
|
||||
Net Income Attributable to Kadant
|
|
$
|
8,951
|
|
|
$
|
6,876
|
|
|
|
|
|
|
||||
Earnings per Share Attributable to Kadant (Note 3):
|
|
|
|
|
|
|
||
Basic
|
|
$
|
0.82
|
|
|
$
|
0.64
|
|
Diluted
|
|
$
|
0.80
|
|
|
$
|
0.62
|
|
|
|
|
|
|
||||
Weighted Average Shares (Note 3):
|
|
|
|
|
|
|
||
Basic
|
|
10,952
|
|
|
10,793
|
|
||
Diluted
|
|
11,205
|
|
|
11,018
|
|
||
|
|
|
|
|
||||
Cash Dividend Declared per Common Share
|
|
$
|
0.21
|
|
|
$
|
0.19
|
|
|
|
|
Three Months Ended
|
||||||
|
|
April 1,
2017 |
|
April 2,
2016 |
||||
(In thousands)
|
|
|
||||||
|
|
|
|
|
||||
Net Income
|
|
$
|
9,067
|
|
|
$
|
6,991
|
|
|
|
|
|
|
||||
Other Comprehensive Items:
|
|
|
|
|
|
|
||
Foreign currency translation adjustment
|
|
5,032
|
|
|
5,930
|
|
||
Pension and other post-retirement liability adjustments (net of tax provision of $49 in 2017 and tax benefit of $236 in 2016)
|
|
82
|
|
|
(418
|
)
|
||
Deferred gain (loss) on hedging instruments (net of tax provision of $15 in 2017 and tax benefit of $72 in 2016)
|
|
27
|
|
|
(126
|
)
|
||
Other Comprehensive Items
|
|
5,141
|
|
|
5,386
|
|
||
Comprehensive Income
|
|
14,208
|
|
|
12,377
|
|
||
Comprehensive Income Attributable to Noncontrolling Interest
|
|
(162
|
)
|
|
(174
|
)
|
||
Comprehensive Income Attributable to Kadant
|
|
$
|
14,046
|
|
|
$
|
12,203
|
|
|
|
Three Months Ended
|
||||||
|
|
April 1,
2017 |
|
April 2,
2016 |
||||
(In thousands)
|
|
|
||||||
|
|
|
|
|
||||
Operating Activities:
|
|
|
|
|
||||
Net income attributable to Kadant
|
|
$
|
8,951
|
|
|
$
|
6,876
|
|
Net income attributable to noncontrolling interest
|
|
116
|
|
|
115
|
|
||
Net income
|
|
9,067
|
|
|
6,991
|
|
||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||
Depreciation and amortization
|
|
3,256
|
|
|
2,564
|
|
||
Stock-based compensation expense
|
|
1,295
|
|
|
1,323
|
|
||
Provision for losses on accounts receivable
|
|
129
|
|
|
76
|
|
||
Loss (gain) on the sale of property, plant, and equipment
|
|
41
|
|
|
(346
|
)
|
||
Other items, net
|
|
180
|
|
|
781
|
|
||
Contributions to U.S. pension plan
|
|
(90
|
)
|
|
(270
|
)
|
||
Changes in current assets and liabilities, net of effects of acquisition:
|
|
|
|
|
|
|
||
Accounts receivable
|
|
(5,043
|
)
|
|
3,259
|
|
||
Unbilled contract costs and fees
|
|
(1,134
|
)
|
|
4,313
|
|
||
Inventories
|
|
(3,964
|
)
|
|
(604
|
)
|
||
Other current assets
|
|
(1,886
|
)
|
|
(1,808
|
)
|
||
Accounts payable
|
|
805
|
|
|
(1,234
|
)
|
||
Other current liabilities
|
|
(973
|
)
|
|
(9,527
|
)
|
||
Net cash provided by operating activities
|
|
1,683
|
|
|
5,518
|
|
||
|
|
|
|
|
||||
Investing Activities:
|
|
|
|
|
|
|
||
Purchases of property, plant, and equipment
|
|
(1,722
|
)
|
|
(524
|
)
|
||
Issuance of note receivable
|
|
—
|
|
|
(2,813
|
)
|
||
Proceeds from sale of property, plant, and equipment
|
|
—
|
|
|
385
|
|
||
Acquisition (Note 1)
|
|
(165
|
)
|
|
—
|
|
||
Other investing activities
|
|
(2
|
)
|
|
—
|
|
||
Net cash used in investing activities
|
|
(1,889
|
)
|
|
(2,952
|
)
|
||
|
|
|
|
|
||||
Financing Activities:
|
|
|
|
|
|
|
||
Proceeds from issuance of debt
|
|
8,000
|
|
|
41,046
|
|
||
Repayment of debt
|
|
(4,610
|
)
|
|
(125
|
)
|
||
Tax withholding payments related to stock-based compensation
|
|
(2,182
|
)
|
|
(1,980
|
)
|
||
Dividends paid
|
|
(2,078
|
)
|
|
(1,831
|
)
|
||
Payment of debt issuance costs
|
|
(654
|
)
|
|
—
|
|
||
Payment of contingent consideration
|
|
—
|
|
|
(1,091
|
)
|
||
Change in restricted cash
|
|
590
|
|
|
(58
|
)
|
||
Other financing activities
|
|
(118
|
)
|
|
—
|
|
||
Net cash (used in) provided by financing activities
|
|
(1,052
|
)
|
|
35,961
|
|
||
|
|
|
|
|
||||
Exchange Rate Effect on Cash and Cash Equivalents
|
|
1,311
|
|
|
460
|
|
||
|
|
|
|
|
||||
Increase in Cash and Cash Equivalents
|
|
53
|
|
|
38,987
|
|
||
Cash and Cash Equivalents at Beginning of Period
|
|
71,487
|
|
|
65,530
|
|
||
Cash and Cash Equivalents at End of Period
|
|
$
|
71,540
|
|
|
$
|
104,517
|
|
(In thousands, except 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 January 2, 2016
|
|
14,624,159
|
|
|
$
|
146
|
|
|
$
|
100,536
|
|
|
$
|
297,258
|
|
|
3,850,779
|
|
|
$
|
(94,359
|
)
|
|
$
|
(36,972
|
)
|
|
$
|
1,336
|
|
|
$
|
267,945
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,876
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
115
|
|
|
6,991
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Dividend declared
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,063
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,063
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Activity under stock plans
|
|
—
|
|
|
—
|
|
|
(2,639
|
)
|
|
—
|
|
|
(80,942
|
)
|
|
1,983
|
|
|
—
|
|
|
—
|
|
|
(656
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other comprehensive items
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,327
|
|
|
59
|
|
|
5,386
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at April 2, 2016
|
|
14,624,159
|
|
|
$
|
146
|
|
|
$
|
97,897
|
|
|
$
|
302,071
|
|
|
3,769,837
|
|
|
$
|
(92,376
|
)
|
|
$
|
(31,645
|
)
|
|
$
|
1,510
|
|
|
$
|
277,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at December 31, 2016
|
|
14,624,159
|
|
|
$
|
146
|
|
|
$
|
101,405
|
|
|
$
|
321,050
|
|
|
3,686,532
|
|
|
$
|
(90,335
|
)
|
|
$
|
(49,637
|
)
|
|
$
|
1,650
|
|
|
$
|
284,279
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,951
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
116
|
|
|
9,067
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Dividend declared
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,310
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,310
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Activity under stock plans
|
|
—
|
|
|
—
|
|
|
(2,431
|
)
|
|
—
|
|
|
(63,020
|
)
|
|
1,544
|
|
|
—
|
|
|
—
|
|
|
(887
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other comprehensive items
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,095
|
|
|
46
|
|
|
5,141
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at April 1, 2017
|
|
14,624,159
|
|
|
$
|
146
|
|
|
$
|
98,974
|
|
|
$
|
327,691
|
|
|
3,623,512
|
|
|
$
|
(88,791
|
)
|
|
$
|
(44,542
|
)
|
|
$
|
1,812
|
|
|
$
|
295,290
|
|
|
|
Three Months Ended
|
||||||
(In thousands)
|
|
April 1,
2017 |
|
April 2,
2016 |
||||
Non-Cash Financing Activities:
|
|
|
|
|
|
|
||
Issuance of Company common stock
|
|
$
|
2,640
|
|
|
$
|
2,854
|
|
Dividends declared but unpaid
|
|
$
|
2,310
|
|
|
$
|
2,063
|
|
|
|
April 1,
2017 |
|
December 31,
2016 |
||||
(In thousands)
|
|
|
||||||
Raw Materials and Supplies
|
|
$
|
24,670
|
|
|
$
|
21,086
|
|
Work in Process
|
|
13,104
|
|
|
12,293
|
|
||
Finished Goods
|
|
22,067
|
|
|
21,572
|
|
||
Total Inventories
|
|
$
|
59,841
|
|
|
$
|
54,951
|
|
|
|
April 1,
2017 |
|
December 31,
2016 |
||||
(In thousands)
|
|
|
||||||
Indefinite-Lived
|
|
$
|
8,100
|
|
|
$
|
8,100
|
|
|
|
|
|
|
||||
Definite-Lived, Gross
|
|
$
|
101,743
|
|
|
$
|
77,052
|
|
Acquisition
|
|
—
|
|
|
24,691
|
|
||
Accumulated amortization
|
|
(50,759
|
)
|
|
(49,040
|
)
|
||
Currency translation
|
|
(7,268
|
)
|
|
(8,073
|
)
|
||
Definite-Lived, Net
|
|
$
|
43,716
|
|
|
$
|
44,630
|
|
|
|
|
|
|
||||
Total Intangible Assets, Net
|
|
$
|
51,816
|
|
|
$
|
52,730
|
|
(In thousands)
|
|
Papermaking Systems Segment
|
|
Wood Processing Systems Segment
|
|
Total
|
||||||
Balance at December 31, 2016
|
|
|
|
|
|
|
||||||
Gross balance
|
|
$
|
219,699
|
|
|
$
|
17,265
|
|
|
$
|
236,964
|
|
Accumulated impairment losses
|
|
(85,509
|
)
|
|
—
|
|
|
(85,509
|
)
|
|||
Net balance
|
|
134,190
|
|
|
17,265
|
|
|
151,455
|
|
|||
Currency Translation
|
|
2,092
|
|
|
264
|
|
|
2,356
|
|
|||
Total 2017 Adjustments
|
|
2,092
|
|
|
264
|
|
|
2,356
|
|
|||
Balance at April 1, 2017
|
|
|
|
|
|
|
|
|
|
|||
Gross balance
|
|
221,791
|
|
|
17,529
|
|
|
239,320
|
|
|||
Accumulated impairment losses
|
|
(85,509
|
)
|
|
—
|
|
|
(85,509
|
)
|
|||
Net balance
|
|
$
|
136,282
|
|
|
$
|
17,529
|
|
|
$
|
153,811
|
|
|
|
Three Months Ended
|
||||||
(In thousands)
|
|
April 1,
2017 |
|
April 2,
2016 |
||||
Balance at Beginning of Year
|
|
$
|
3,843
|
|
|
$
|
3,670
|
|
Provision charged to income
|
|
804
|
|
|
560
|
|
||
Usage
|
|
(570
|
)
|
|
(526
|
)
|
||
Currency translation
|
|
62
|
|
|
81
|
|
||
Balance at End of Period
|
|
$
|
4,139
|
|
|
$
|
3,785
|
|
|
|
Three Months Ended
|
||||||
|
|
April 1,
2017 |
|
April 2,
2016 |
||||
(In thousands, except per share amounts)
|
|
|
||||||
Amounts Attributable to Kadant:
|
|
|
|
|
||||
Net Income
|
|
$
|
8,951
|
|
|
$
|
6,876
|
|
|
|
|
|
|
||||
Basic Weighted Average Shares
|
|
10,952
|
|
|
10,793
|
|
||
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares
|
|
253
|
|
|
225
|
|
||
Diluted Weighted Average Shares
|
|
11,205
|
|
|
11,018
|
|
||
|
|
|
|
|
||||
Basic Earnings per Share
|
|
$
|
0.82
|
|
|
$
|
0.64
|
|
|
|
|
|
|
||||
Diluted Earnings per Share
|
|
$
|
0.80
|
|
|
$
|
0.62
|
|
|
|
April 1,
2017 |
|
December 31,
2016 |
||||
(In thousands)
|
|
|
||||||
Revolving Credit Facility, due 2022
|
|
$
|
65,625
|
|
|
$
|
61,494
|
|
Obligations Under Capital Lease, due 2017 to 2022
|
|
4,359
|
|
|
4,309
|
|
||
Other Borrowings, due 2017 to 2023
|
|
566
|
|
|
608
|
|
||
Total
|
|
70,550
|
|
|
66,411
|
|
||
Less: Current Maturities of Long-Term Obligations
|
|
(655
|
)
|
|
(643
|
)
|
||
Long-Term Obligations
|
|
$
|
69,895
|
|
|
$
|
65,768
|
|
|
(In thousands)
|
|
Foreign
Currency
Translation
Adjustment
|
|
Unrecognized
Prior Service
Cost on Pension and Other Post-
Retirement Benefit Plans
|
|
Deferred Loss
on Pension and
Other Post-
Retirement Benefit Plans
|
|
Deferred Gain (Loss)
on Hedging
Instruments
|
|
Accumulated
Other
Comprehensive
Items
|
||||||||||
Balance at December 31, 2016
|
|
$
|
(41,094
|
)
|
|
$
|
(397
|
)
|
|
$
|
(8,158
|
)
|
|
$
|
12
|
|
|
$
|
(49,637
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
4,986
|
|
|
(1
|
)
|
|
(28
|
)
|
|
12
|
|
|
4,969
|
|
|||||
Reclassifications from AOCI
|
|
—
|
|
|
23
|
|
|
88
|
|
|
15
|
|
|
126
|
|
|||||
Net current period other comprehensive income
|
|
4,986
|
|
|
22
|
|
|
60
|
|
|
27
|
|
|
5,095
|
|
|||||
Balance at April 1, 2017
|
|
$
|
(36,108
|
)
|
|
$
|
(375
|
)
|
|
$
|
(8,098
|
)
|
|
$
|
39
|
|
|
$
|
(44,542
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at January 2, 2016
|
|
$
|
(27,932
|
)
|
|
$
|
(489
|
)
|
|
$
|
(8,322
|
)
|
|
$
|
(229
|
)
|
|
$
|
(36,972
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
5,871
|
|
|
(2
|
)
|
|
(610
|
)
|
|
(239
|
)
|
|
5,020
|
|
|||||
Reclassifications from AOCI
|
|
—
|
|
|
24
|
|
|
170
|
|
|
113
|
|
|
307
|
|
|||||
Net current period other comprehensive income (loss)
|
|
5,871
|
|
|
22
|
|
|
(440
|
)
|
|
(126
|
)
|
|
5,327
|
|
|||||
Balance at April 2, 2016
|
|
$
|
(22,061
|
)
|
|
$
|
(467
|
)
|
|
$
|
(8,762
|
)
|
|
$
|
(355
|
)
|
|
$
|
(31,645
|
)
|
|
|
Three Months Ended
|
|
|
||||||
(In thousands)
|
|
April 1,
2017 |
|
April 2,
2016 |
|
Statement of Income
Line Item
|
||||
Pension and Other Post-Retirement Plans: (a)
|
|
|
|
|
||||||
Amortization of prior service costs
|
|
$
|
(35
|
)
|
|
$
|
(38
|
)
|
|
SG&A expenses
|
Amortization of actuarial losses
|
|
(135
|
)
|
|
(260
|
)
|
|
SG&A expenses
|
||
Total expense before income taxes
|
|
(170
|
)
|
|
(298
|
)
|
|
|
||
Income tax benefit
|
|
59
|
|
|
104
|
|
|
Provision for income taxes
|
||
|
|
(111
|
)
|
|
(194
|
)
|
|
|
||
Cash Flow Hedges: (b)
|
|
|
|
|
|
|
|
|
||
Interest rate swap agreements
|
|
(12
|
)
|
|
(89
|
)
|
|
Interest expense
|
||
Forward currency-exchange contracts
|
|
—
|
|
|
(61
|
)
|
|
Revenues
|
||
Forward currency-exchange contracts
|
|
(11
|
)
|
|
(23
|
)
|
|
Cost of revenues
|
||
Total expense before income taxes
|
|
(23
|
)
|
|
(173
|
)
|
|
|
||
Income tax benefit
|
|
8
|
|
|
60
|
|
|
Provision for income taxes
|
||
|
|
(15
|
)
|
|
(113
|
)
|
|
|
||
Total Reclassifications
|
|
$
|
(126
|
)
|
|
$
|
(307
|
)
|
|
|
(a)
|
Included in the computation of net periodic benefit cost. See Note 7 for additional information.
|
(b)
|
See Note 9 for additional information.
|
|
|
|
|
April 1, 2017
|
|
December 31, 2016
|
||||||||||||
|
|
Balance Sheet Location
|
|
Asset (Liability) (a)
|
|
Notional Amount (b)
|
|
Asset (Liability) (a)
|
|
Notional Amount
|
||||||||
(In thousands)
|
|
|
|
|
|
|||||||||||||
Derivatives Designated as Hedging Instruments:
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives in an Asset Position:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Forward currency-exchange contracts
|
|
Other Current Assets
|
|
$
|
3
|
|
|
$
|
950
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest rate swap agreement
|
|
Other Long-Term Assets
|
|
$
|
82
|
|
|
$
|
10,000
|
|
|
$
|
62
|
|
|
$
|
10,000
|
|
Derivatives in a Liability Position:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Forward currency-exchange contracts
|
|
Other Current Liabilities
|
|
$
|
(21
|
)
|
|
$
|
946
|
|
|
$
|
(41
|
)
|
|
$
|
2,380
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives Not Designated as Hedging Instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Derivatives in an Asset Position:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Forward currency-exchange contracts
|
|
Other Current Assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
227
|
|
Derivatives in a Liability Position:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Forward currency-exchange contracts
|
|
Other Current Liabilities
|
|
$
|
(38
|
)
|
|
$
|
16,592
|
|
|
$
|
(237
|
)
|
|
$
|
17,185
|
|
(a)
|
See Note 10 for the fair value measurements relating to these financial instruments.
|
(b)
|
The total notional amount is indicative of the level of the Company's derivative activity during the
first
quarter of
2017
.
|
(In thousands)
|
|
Interest Rate Swap
Agreement
|
|
Forward Currency-
Exchange
Contracts
|
|
Total
|
||||||
Unrealized Gain (Loss), Net of Tax, at December 31, 2016
|
|
$
|
40
|
|
|
$
|
(28
|
)
|
|
$
|
12
|
|
Loss reclassified to earnings (a)
|
|
8
|
|
|
7
|
|
|
15
|
|
|||
Gain recognized in AOCI
|
|
4
|
|
|
8
|
|
|
12
|
|
|||
Unrealized Gain (Loss), Net of Tax, at April 1, 2017
|
|
$
|
52
|
|
|
$
|
(13
|
)
|
|
$
|
39
|
|
•
|
Level 1—Quoted prices in active markets for identical assets or liabilities.
|
•
|
Level 2—Inputs, other than quoted prices in active markets, that are observable either directly or indirectly.
|
•
|
Level 3—Unobservable inputs based on the Company's own assumptions.
|
|
|
Fair Value as of April 1, 2017
|
||||||||||||||
(In thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Money market funds and time deposits
|
|
$
|
10,418
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,418
|
|
Forward currency-exchange contracts
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
3
|
|
Interest rate swap agreement
|
|
$
|
—
|
|
|
$
|
82
|
|
|
$
|
—
|
|
|
$
|
82
|
|
Banker's acceptance drafts (a)
|
|
$
|
—
|
|
|
$
|
9,229
|
|
|
$
|
—
|
|
|
$
|
9,229
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Forward currency-exchange contracts
|
|
$
|
—
|
|
|
$
|
59
|
|
|
$
|
—
|
|
|
$
|
59
|
|
|
|
Fair Value as of December 31, 2016
|
||||||||||||||
(In thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Money market funds and time deposits
|
|
$
|
10,855
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,855
|
|
Forward currency-exchange contracts
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
2
|
|
Interest rate swap agreement
|
|
$
|
—
|
|
|
$
|
62
|
|
|
$
|
—
|
|
|
$
|
62
|
|
Banker's acceptance drafts (a)
|
|
$
|
—
|
|
|
$
|
7,852
|
|
|
$
|
—
|
|
|
$
|
7,852
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Forward currency-exchange contracts
|
|
$
|
—
|
|
|
$
|
278
|
|
|
$
|
—
|
|
|
$
|
278
|
|
(a)
|
Included in accounts receivable in the accompanying condensed consolidated balance sheet.
|
|
|
April 1, 2017
|
|
December 31, 2016
|
||||||||||||
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||||||
(In thousands)
|
|
|
|
|
||||||||||||
Long-term Debt Obligations:
|
|
|
|
|
|
|
|
|
||||||||
Revolving credit facility
|
|
$
|
65,625
|
|
|
$
|
65,625
|
|
|
$
|
61,494
|
|
|
$
|
61,494
|
|
Capital lease obligations
|
|
3,893
|
|
|
3,893
|
|
|
3,857
|
|
|
3,857
|
|
||||
Other borrowings
|
|
377
|
|
|
377
|
|
|
417
|
|
|
417
|
|
||||
|
|
$
|
69,895
|
|
|
$
|
69,895
|
|
|
$
|
65,768
|
|
|
$
|
65,768
|
|
|
|
Three Months Ended
|
||||||
|
|
April 1,
|
|
April 2,
|
||||
(In thousands)
|
|
2017
|
|
2016
|
||||
Revenues:
|
|
|
|
|
||||
Papermaking Systems
|
|
$
|
88,550
|
|
|
$
|
84,027
|
|
Wood Processing Systems
|
|
9,943
|
|
|
8,707
|
|
||
Fiber-based Products
|
|
4,364
|
|
|
3,804
|
|
||
|
|
$
|
102,857
|
|
|
$
|
96,538
|
|
|
|
|
|
|
|
|
Three Months Ended
|
||||||
|
|
April 1,
|
|
April 2,
|
||||
(In thousands)
|
|
2017
|
|
2016
|
||||
Income Before Provision for Income Taxes:
|
|
|
|
|
|
|
||
Papermaking Systems
|
|
$
|
14,258
|
|
|
$
|
13,497
|
|
Wood Processing Systems
|
|
2,504
|
|
|
806
|
|
||
Corporate and Fiber-based Products (a)
|
|
(4,716
|
)
|
|
(4,210
|
)
|
||
Total operating income
|
|
12,046
|
|
|
10,093
|
|
||
Interest expense, net
|
|
(244
|
)
|
|
(214
|
)
|
||
|
|
$
|
11,802
|
|
|
$
|
9,879
|
|
|
|
|
|
|
||||
Capital Expenditures:
|
|
|
|
|
|
|
||
Papermaking Systems
|
|
$
|
1,484
|
|
|
$
|
518
|
|
Other
|
|
238
|
|
|
6
|
|
||
|
|
$
|
1,722
|
|
|
$
|
524
|
|
|
|
|
|
|
|
-
|
Stock-Preparation: custom-engineered systems and equipment, as well as standard individual components, for baling, pulping, de-inking, screening, cleaning, and refining primarily recyclable fibers; balers and related equipment used in the processing of recyclable and waste materials; and filtering, recausticizing, and evaporation equipment and systems used in the production of virgin pulp;
|
|
-
|
Doctoring, Cleaning, & Filtration: doctoring systems and related consumables that continuously clean rolls to keep paper machines running efficiently; doctor blades made of a variety of materials to perform functions including cleaning, creping, web removal, flaking, and the application of coatings; profiling systems that control moisture, web curl, and gloss during paper converting; and systems and equipment used to continuously clean paper machine fabrics and rolls, drain water from pulp mixtures, form the sheet or web, and filter the process water for reuse. Doctoring and cleaning systems are also used in other industries, such as carbon fiber, textiles and food processing; and
|
|
-
|
Fluid-Handling: rotary joints, precision unions, steam and condensate systems, components, and controls used primarily in the dryer section of the papermaking process and during the production of corrugated packaging, metals, plastics, rubber, textiles, chemicals, and food.
|
|
-
|
Stranders: disc and ring stranders and related parts and consumables that cut batch-fed logs into strands for OSB production;
|
|
-
|
Rotary Debarkers: rotary debarkers and related parts and consumables that employ a combination of mechanical abrasion and log-to-log contact to efficiently remove bark from logs of all shapes and species;
|
|
-
|
Chippers: disc, drum, and veneer chippers and related parts and consumables that are high quality, robust chipper systems for waste-wood and whole-log applications found in pulp woodrooms, chip plants, and sawmill and planer mill sites; and
|
|
-
|
Repair: refurbishment and repair of pulping equipment used in the pulp and paper industry.
|
|
|
Three Months Ended
|
||||
|
|
April 1,
2017 |
|
April 2,
2016 |
||
|
|
|
|
|
||
Revenues
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
||
Costs and Operating Expenses:
|
|
|
|
|
|
|
Cost of revenues
|
|
52
|
|
|
54
|
|
Selling, general, and administrative expenses
|
|
34
|
|
|
34
|
|
Research and development expenses
|
|
2
|
|
|
2
|
|
Other income
|
|
—
|
|
|
—
|
|
|
|
88
|
|
|
90
|
|
Operating Income
|
|
12
|
|
|
10
|
|
Interest Income (Expense), Net
|
|
—
|
|
|
—
|
|
Income Before Provision for Income Taxes
|
|
12
|
|
|
10
|
|
Provision for Income Taxes
|
|
3
|
|
|
3
|
|
Net Income
|
|
9
|
%
|
|
7
|
%
|
|
|
Three Months Ended
|
||||||
|
|
April 1,
2017 |
|
April 2,
2016 |
||||
(In thousands)
|
|
|
||||||
Revenues:
|
|
|
|
|
||||
Papermaking Systems
|
|
$
|
88,550
|
|
|
$
|
84,027
|
|
Wood Processing Systems
|
|
9,943
|
|
|
8,707
|
|
||
Fiber-based Products
|
|
4,364
|
|
|
3,804
|
|
||
|
|
$
|
102,857
|
|
|
$
|
96,538
|
|
|
|
Three Months Ended
|
|
|
|
Increase
Excluding Effect of Foreign Currency Translation |
|
|||||||||
(In thousands) |
|
April 1,
2017 |
|
April 2,
2016 |
|
Increase
|
|
|||||||||
Papermaking Systems Product Lines:
|
|
|
|
|
|
|
|
|
||||||||
Stock-Preparation
|
|
$
|
41,153
|
|
|
$
|
38,418
|
|
|
$
|
2,735
|
|
|
$
|
3,261
|
|
Doctoring, Cleaning, & Filtration
|
|
25,350
|
|
|
23,839
|
|
|
1,511
|
|
|
2,113
|
|
||||
Fluid-Handling
|
|
22,047
|
|
|
21,770
|
|
|
277
|
|
|
463
|
|
||||
|
|
$
|
88,550
|
|
|
$
|
84,027
|
|
|
$
|
4,523
|
|
|
$
|
5,837
|
|
|
|
Three Months Ended
|
||||
|
|
April 1,
2017 |
|
April 2,
2016 |
||
Gross Profit Margin:
|
|
|
|
|
||
Papermaking Systems
|
|
47.9
|
%
|
|
46.6
|
%
|
Wood Processing Systems
|
|
42.1
|
|
|
33.0
|
|
Fiber-based Products
|
|
55.0
|
|
|
51.6
|
|
|
|
47.6
|
%
|
|
45.6
|
%
|
|
KADANT INC.
|
|
|
|
/s/ Michael J. McKenney
|
|
Michael J. McKenney
|
|
Senior Vice President and Chief Financial Officer
|
|
(Principal Financial Officer)
|
Exhibit Number
|
|
|
|
Description of Exhibit
|
|
|
|
|
31.1
|
|
Certification of the Principal Executive Officer of the Registrant Pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended.
|
|
|
|
31.2
|
|
Certification of the Principal Financial Officer of the Registrant Pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended.
|
|
|
|
32
|
|
Certification of the Chief Executive Officer and the Chief Financial Officer of the Registrant Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
101.INS
|
|
XBRL Instance Document.*
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.*
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Calculation Linkbase Document.*
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Label Linkbase Document.*
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Presentation Linkbase Document.*
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Definition Linkbase Document.*
|
1 Year Kadant Chart |
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