Financial Data and Key Metrics Changes - Q3 2022 revenue increased by 12% year-over-year to $225 million, benefiting from record capital shipments [10] - Adjusted EBITDA reached a record $48 million, with an EBITDA margin of 21.3% [11][28] - GAAP diluted EPS rose by 34% to $2.35, while adjusted diluted EPS increased by 21% to a record $2.38 [27][31] - Operating cash flow decreased by 34% to $24.9 million, and free cash flow decreased by 46% to $18.5 million due to increased working capital [29] Business Line Data and Key Metrics Changes - Flow Control segment revenue reached a record $87 million, up 14% year-over-year, with bookings at $85 million, up 11% [13] - Industrial Processing segment revenue increased by 5% to $86 million, with adjusted EBITDA margin at 24% [16] - Material Handling segment revenue rose by 23% to $52 million, with parts revenue constituting 57% of total revenue [18] Market Data and Key Metrics Changes - Strong demand for aftermarket parts was noted, while new capital order activity moderated [9] - The company experienced a favorable foreign currency translation effect of $3.4 million in Q3 2022 [24] Company Strategy and Development Direction - The company is focused on completing a significant number of capital projects and maintaining a strong backlog [20][21] - There is an expectation of moderated spending in the coming months due to central bank actions aimed at reducing inflation [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from inflation, supply chain constraints, and geopolitical tensions but expressed confidence in the company's operational strength [21] - The company anticipates a potential risk from China's Zero COVID policy affecting operations [38] Other Important Information - The company narrowed its revenue guidance for 2022 to $890 million to $896 million, citing delays in capital shipments [37] - SG&A expenses as a percentage of revenue decreased to 23.7% in Q3 2022 compared to 26.2% in the prior year [26] Q&A Session Summary Question: Capital bookings decline and customer sentiment - Management indicated that the decline in capital bookings is a mix of market reactions and a wait-and-see attitude due to economic conditions [41][47] Question: Impact of capital project shifts - Approximately $10 million in capital projects were shifted from Q4 2022 to the first half of 2023, primarily affecting the Industrial Processing segment [68] Question: Commodity prices and input costs - Management noted that while stainless steel prices had decreased, they have stabilized recently, and the company has not significantly benefited or been hurt by these changes [71][72] Question: Future of greenfield projects and market dynamics - Management expects continued growth in packaging paper business driven by e-retail and sustainable materials, with a forecasted growth rate of about 4.8% annually for the next decade [59][60]

Financial Data and Key Metrics Changes - Revenue increased by 13% year-over-year, driven by strong aftermarket demand and capital order shipments [10] - Adjusted EBITDA reached a record $46 million, up 11% from $41.3 million in Q2 2021, with an adjusted EBITDA margin of 20.7% [24] - Diluted EPS was $2.24, an increase from $1.96 in Q2 2021, exceeding the high end of guidance by $0.28 [23][29] Business Line Data and Key Metrics Changes - Flow Control segment saw bookings and revenue increase by 36% and 20% respectively, with aftermarket parts revenue making up 73% of total revenue [13] - Industrial Processing segment bookings rose 8% to $110 million, with revenue increasing 2% to $84 million, affected by unfavorable foreign currency translation [15] - Material Handling segment revenue increased by 23% to $52 million, with capital bookings up 93% year-over-year [17][18] Market Data and Key Metrics Changes - Bookings increased by 25% to $266 million, with strong contributions from North America and Europe [11] - The strengthening U.S. dollar negatively impacted reported bookings by $10 million [12] - The company experienced healthy demand across all markets, particularly in North America and Europe [11] Company Strategy and Development Direction - The company aims to capitalize on opportunities arising from a record backlog and robust cash flow [21] - Focus on sustainable industrial processing solutions to drive long-term growth [103] - The company is diversifying geographically and across markets to mitigate cyclicality in demand [61] Management's Comments on Operating Environment and Future Outlook - Management anticipates a moderation in industrial demand as consumer demand slows due to central bank actions to control inflation [20] - The company remains well-positioned to weather economic slowdowns, with strong fundamentals in end markets [103] - Concerns exist regarding potential impacts from geopolitical tensions and supply chain challenges [37] Other Important Information - SG&A expenses increased to $55.3 million, reflecting costs from acquisitions and foreign currency translation effects [22] - The company raised its full-year revenue guidance to $890 million to $905 million, while maintaining adjusted diluted EPS guidance of $8.80 to $9 [35] Q&A Session Summary Question: Revenue guidance for Q3 and dynamics in the second half - Management noted a loss of $31 million in revenue due to foreign currency translation, impacting Q3 and Q4 forecasts [46] Question: Parts and consumables margin versus capital equipment - Management explained that parts and consumables can adjust prices more quickly compared to capital equipment, which is more exposed to inflationary pressures [49] Question: Expectations for booking activities in the second half - Management indicated a potential moderation in bookings but noted that discussions with customers remain strong [56] Question: Risks associated with the housing market and industrial processing - Management acknowledged a potential slowdown in the housing market but emphasized strong underlying demand [75] Question: Impact of energy prices on capital project activity - Management highlighted that high energy prices in Europe are driving demand for more efficient processing equipment [97]

KĀDANT Second Quarter 2022 Business Review August 3, 2022 Forward-Looking Statements The following constitutes a "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements that involve a number of risks and uncertainties, including forward-looking statements about our future financial and operating performance, demand for our products, and economic and industry outlook. These forward-looking statements represent our expectations ...

Kadant Inc. (NYSE:KAI) Q1 2022 Earnings Conference Call May 4, 2022 11:00 AM ET Company Participants Jeff Powell - President, Chief Executive Officer and Director Michael McKenney - Executive Vice President and Chief Financial Officer Conference Call Participants Chris Howe - Barrington Research Associates, Inc. Bobby Eubank - Chevy Chase Trust Walter Liptak - Seaport Global Securities Operator Good day. And thank you for standing by. Welcome to the Q1 2022 Kadant Inc. Earnings Conference Call. [Operator In ...

Kadant Inc. (NYSE:KAI) Q4 2021 Results Conference Call February 17, 2022 11:00 AM ET Company Participants Jeffrey Powell - President, CEO Michael McKenney - EVP, CFO Conference Call Participants Bobby Eubank - Chevy Chase Trust Chris Howe - Barrington Research John Franzreb - Sidoti Kurt Yinger - D.A. Davidson Walter Liptak - Seaport Operator Thank you for standing by, and welcome to the Fourth Quarter 2021 Kadant Inc. Earnings Conference Call. [Operator Instructions] As a reminder, today's program may be r ...

Start Time: 11:00 January 1, 0000 11:37 AM ET Kadant Inc. (NYSE:KAI) Q3 2021 Earnings Conference Call November 03, 2021, 11:00 AM ET Company Participants Jeff Powell - President and CEO Michael McKenney - EVP & CFO Conference Call Participants Kurt Yinger - D.A. Davidson Walt Liptak - Seaport Research Bobby Eubank - Chevy Chase Trust Operator Ladies and gentlemen, thank you for standing by. Welcome to Q3 2021 Kadant Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode. Lat ...

Kadant Reports Record Results for Second Quarter 2021 August 3, 2021 WESTFORD, Mass., Aug. 03, 2021 (GLOBE NEWSWIRE) -- Kadant Inc. (NYSE: KAI) reported its financial results for the second quarter ended July 3, 2021. Second Quarter Financial Highlights with Records Achieved in Each of the Following Metrics Bookings increased 60% to $213 million. Revenue increased 28% to $196 million. Operating cash flow increased 101% to $44 million. Free cash flow increased 100% to $42 million. Net income increased 97% to ...

Kadant Inc. (NYSE:KAI) Q2 2021 Earnings Conference Call August 4, 2021 11:00 AM ET Company Participants Michael McKenney - EVP & CFO Jeff Powell - President and CEO Conference Call Participants Chris Howe - Barrington Research John Franzreb - Sidoti & Company Kurt Yinger - D.A. Davidson Walt Liptak - Seaport Research Will Hyler - WDH Capital Operator Good day, and thank you for standing by. Welcome to the Q2, 2021 Kadant Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode ...

Kadant Inc. (NYSE:KAI) Q1 2021 Results Conference Call May 5, 2021 11:00 AM ET Company Participants Michael McKenney - EVP and CFO Jeff Powell - President and CEO Conference Call Participants Kurt Yinger - D.A. Davidson Chris Howe - Barrington Walter Liptak - Seaport Bobby Eubank - Chevy Chase Trust Operator Ladies and gentlemen, thank you for standing by, and welcome to the Q1 2021 Kadant Inc. Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker tod ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________ FORM 10-K (mark one) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 2, 2021 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) (State or other ju ...