kai-20210403

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 3, 2021


☐			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 30, 2021, the registrant had 11,577,780 shares of common stock outstanding.

Table of Contents

Kadant Inc.

Quarterly Report on Form 10-Q

for the Period Ended April 3, 2021

Table of Contents


		Page
PART I: Financial Information

Item 1.	Financial Statements

	Condensed Consolidated Balance Sheet as of April 3, 2021 and January 2, 2021 (unaudited)	3

	Condensed Consolidated Statement of Income for the three-month periods ended April 3, 2021 and March 28, 2020 (unaudited)	4

	Condensed Consolidated Statement of Comprehensive Income (Loss) for the three-month periods ended April 3, 2021 and March 28, 2020 (unaudited)	5

	Condensed Consolidated Statement of Cash Flows for the three-month periods ended April 3, 2021 and March 28, 2020 (unaudited)	6

	Condensed Consolidated Statement of Stockholders' Equity for the three-month periods ended April 3, 2021 and March 28, 2020 (unaudited)	7

	Notes to Condensed Consolidated Financial Statements (unaudited)	8

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	19

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26

Item 4.	Controls and Procedures	26

PART II: Other Information

Item 1A.	Risk Factors	27

Item 6.	Exhibits	27

Table of Contents

PART 1 – FINANCIAL INFORMATION

Item 1 – Financial Statements

KADANT INC.

Condensed Consolidated Balance Sheet

(Unaudited)


	April 3, 2021		January 2, 2021
(In thousands, except share and per share amounts)
Assets
Current Assets:
Cash and cash equivalents	$	65,982	$	65,682
Restricted cash	726		958
Accounts receivable, net of allowances of $2,797 and $2,977	104,378		91,540
Inventories	112,590		106,814
Unbilled revenue	6,204		7,576
Other current assets	19,874		17,250
Total Current Assets	309,754		289,820
Property, Plant, and Equipment, net of accumulated depreciation of $109,426 and $107,832	82,204		84,642
Other Assets	39,669		40,391
Intangible Assets, Net	155,534		160,965
Goodwill	348,504		351,753
Total Assets	$	935,665	$	927,571

Liabilities and Stockholders' Equity
Current Liabilities:
Current maturities of long-term obligations (Note 4)	$	1,417	$	1,474
Accounts payable	38,988		32,264
Accrued payroll and employee benefits	25,525		31,168
Customer deposits	37,434		29,433
Advanced billings	9,801		8,513
Other current liabilities	33,429		31,836
Total Current Liabilities	146,594		134,688
Long-Term Obligations (Note 4)	221,067		232,000
Other Long-Term Liabilities	63,696		63,978

Commitments and Contingencies (Note 10)

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	108,064		110,824
Retained earnings	493,067		479,400
Treasury stock at cost, 3,046,379 and 3,081,919 shares	(74,649)		(75,519)
Accumulated other comprehensive items (Note 6)	(24,040)		(19,492)
Total Kadant Stockholders' Equity	502,588		495,359
Noncontrolling interest	1,720		1,546
Total Stockholders' Equity	504,308		496,905
Total Liabilities and Stockholders' Equity	$	935,665	$	927,571

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 3, 2021		March 28, 2020
(In thousands, except per share amounts)
Revenue (Notes 1 and 9)	$	172,463	$	159,127

Costs and Operating Expenses:
Cost of revenue	96,748		90,804
Selling, general, and administrative expenses	49,431		45,592
Research and development expenses	2,857

SEC Form 10-Q filed by Kadant Inc