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August 2015 Investor Presentation – Kadant Inc.

Kadant Inc. · Aug 14, 2015 · 52 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. August 2015 Investor Presentation – Kadant Inc. – slide 1
    Kadant Investor Presentation August 2015 KAI Investor PresentationAugust 2015 2015 Kadant Inc. All rights reserved.
  2. August 2015 Investor Presentation – Kadant Inc. – slide 2
    Use of NonGAAP Financial Measures In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we use certain nonGAAP financial measures, including increases or decreases in…
  3. August 2015 Investor Presentation – Kadant Inc. – slide 3
    About Kadant We are a global supplier of highvalue, critical components and engineered systems used in process industries worldwide. Our customers use our products and technologies to reduce their input costs and improve…
  4. August 2015 Investor Presentation – Kadant Inc. – slide 4
    About Kadant NYSE ticker symbol KAI 2014 revenue 402 million 2014 gross profit margin 44% Parts & Consumables 62% of 2014 revenue Market capitalization1 495 million Enterprise value2 475 million Shares outstanding3 10.9 million…
  5. August 2015 Investor Presentation – Kadant Inc. – slide 5
    Global Platform Serving Customers Worldwide* Europe North America 2014 Revenue: 93M 2014 Revenue: 216M China Employees: 425 Employees: 666 2014 Revenue: 44M Capacity: 806,000 ft2 Capacity: 618,000 ft2 Employees: 598 Capacity:…
  6. August 2015 Investor Presentation – Kadant Inc. – slide 6
    2014 Revenues by Geography and Product Line Fiberbased Products Rest of World 3% 9% Stock Asia FluidHandling Preparation 14% 26% 32% North America 54% Europe 23% Doctoring, Wood Cleaning, & Processing Filtration…
  7. August 2015 Investor Presentation – Kadant Inc. – slide 7
    2014 Revenues by Geography and Parts vs. Capital Other Mexico Doctoring, 2% 5% Cleaning, & Other Asia Filtration 3% FluidHandling South America Stock 7% Preparation China Stock 11% Preparation FluidHandling U.S. and…
  8. August 2015 Investor Presentation – Kadant Inc. – slide 8
    Kadant Revenue Source by Market Other 28% Packaging 36% OSB 10% Paper Tissue 14% 12% 2014 Revenue Source Percentage estimated by Company using 2014 revenue. 9 KAI Investor PresentationAugust 2015 2015 Kadant Inc.…
  9. August 2015 Investor Presentation – Kadant Inc. – slide 9
    Process Industry Characteristics Focused on input cost Global competition High asset intensity Energy intensive 24/7 operations Risk averse 10 KAI Investor PresentationAugust 2015 2015 Kadant Inc. All rights reserved.
  10. August 2015 Investor Presentation – Kadant Inc. – slide 10
    PRODUCT REVIEW 11 KAI Investor PresentationAugust 2015 2015 Kadant Inc. All rights reserved.
  11. August 2015 Investor Presentation – Kadant Inc. – slide 11
    Stock Preparation 52% 32% Parts 2014 StockPreparation Revenue % of 2014 Revenue Pulpers Screens Cleaners Deinking systems Recycling systems Heat transfer products Separation and cleaning products and systems to convert…
  12. August 2015 Investor Presentation – Kadant Inc. – slide 12
    Stock Preparation Primary competitors Andritz Valmet Voith Major markets Packaging Tissue Recent innovations Compact deinking line FibreWall screen cylinders Drum Pulper 13 KAI Investor PresentationAugust 2015 2015 Kadant…
  13. August 2015 Investor Presentation – Kadant Inc. – slide 13
    Doctoring, Cleaning, & Filtration 59% Parts 29% 2014 DCF Revenue % of 2014 Revenue Doctor blades Doctoring systems Fabric cleaning equipment Roll cleaning systems Filters and filtration systems Products used to clean roll…
  14. August 2015 Investor Presentation – Kadant Inc. – slide 14
    Doctoring, Cleaning, & Filtration Primary competitors Bonetti Clouth IBSPaper Group Major markets Packaging Tissue Food Recent innovations Nanoenhanced blade resin VeriLite roll cleaning system RotoFlex fiber and water…
  15. August 2015 Investor Presentation – Kadant Inc. – slide 15
    26% Fluid Handling 71% Parts 2014 FluidHandling Revenue % of 2014 Revenue Rotary joints and syphons Precision rotating unions Condensate handling systems Steam distribution and management systems Products used to…
  16. August 2015 Investor Presentation – Kadant Inc. – slide 16
    Fluid Handling Primary competitors Deublin Maier Major markets Packaging Food Converting Recent innovations ThermoMax corrugator steam system Highefficiency thermocompressor DuraSeal highperformance elastomeric seals 17 KAI…
  17. August 2015 Investor Presentation – Kadant Inc. – slide 17
    Wood Processing Systems 70% Parts 10% 2014 Wood Processing Revenue % of 2014 Revenue Stranders Rotary debarkers Conveying equipment Chippers Disposable knives Technology and equipment to debark and cut logs into…
  18. August 2015 Investor Presentation – Kadant Inc. – slide 18
    Wood Processing Systems Primary competitors Pallmann Group Major markets Building products (OSB) Forest products Recent innovations Alignment Conveyor Integrated Scoring Knife 19 KAI Investor PresentationAugust 2015 2015…
  19. August 2015 Investor Presentation – Kadant Inc. – slide 19
    3% FiberBased Products % of 2014 Revenue Cellulosebased granules Biodac granular carrier Gransorb industrial absorbent Made from papermaking byproduct Environmentally responsible Natural gas intensive 20 KAI Investor…
  20. August 2015 Investor Presentation – Kadant Inc. – slide 20
    REGIONAL REVIEW 21 KAI Investor PresentationAugust 2015 2015 Kadant Inc. All rights reserved.
  21. August 2015 Investor Presentation – Kadant Inc. – slide 21
    Market Drivers DEVELOPED MARKETS EMERGING MARKETS Input costs Per capita consumption GDP growth Urbanization Population growth Standard of living 22 KAI Investor PresentationAugust 2015 2015 Kadant Inc. All rights reserved.
  22. August 2015 Investor Presentation – Kadant Inc. – slide 22
    North America Bookings and Revenues US (millions) 80 70 60 50 40 Bookings Revenues 30 20 10 0 23 KAI Investor PresentationAugust 2015 2015 Kadant Inc. All rights reserved.
  23. August 2015 Investor Presentation – Kadant Inc. – slide 23
    Europe Bookings and Revenues US (millions) 30 25 20 15 Bookings Revenues 10 5 0 24 KAI Investor PresentationAugust 2015 2015 Kadant Inc. All rights reserved.
  24. August 2015 Investor Presentation – Kadant Inc. – slide 24
    Asia Bookings and Revenues US (millions) 35 30 25 20 Bookings 15 Revenues 10 5 0 25 KAI Investor PresentationAugust 2015 2015 Kadant Inc. All rights reserved.
  25. August 2015 Investor Presentation – Kadant Inc. – slide 25
    RestofWorld Bookings and Revenues US (millions) 18 16 14 12 10 Bookings 8 Revenues 6 4 2 0 26 KAI Investor PresentationAugust 2015 2015 Kadant Inc. All rights reserved.
  26. August 2015 Investor Presentation – Kadant Inc. – slide 26
    GROWTH INITIATIVES 27 KAI Investor PresentationAugust 2015 2015 Kadant Inc. All rights reserved.
  27. August 2015 Investor Presentation – Kadant Inc. – slide 27
    Our Strategy for Growth Increase spares and consumables business Continue to develop products with compelling ROI Focus on highergrowth emerging economies Leverage low cost manufacturing Pursue acquisitions that complement our…
  28. August 2015 Investor Presentation – Kadant Inc. – slide 28
    FINANCIAL RESULTS All financial data presented is unaudited. The years presented are for the fiscal years then ended. 29 KAI Investor PresentationAugust 2015 2015 Kadant Inc. All rights reserved.
  29. August 2015 Investor Presentation – Kadant Inc. – slide 29
    5 Year Revenues and Adjusted Diluted EPS 450 3.00 400 2.50 350 300 2.00 US (millions) 250 1.50 Revenues 200 Adjusted Diluted EPS 150 1.00 100 0.50 50 0 0.00 2010 2011 2012 2013 2014 *Adjusted Diluted EPS is a…
  30. August 2015 Investor Presentation – Kadant Inc. – slide 30
    Adjusted Diluted EPS 2010 2011 2012 2013 2014 Diluted EPS, as reported 1.48 2.74 2.73 2.07 2.56 Income from Discontinued Operation, net of tax (0.07) Diluted EPS from Continuing Operations 1.48 2.74 2.66 2.07 2.56…
  31. August 2015 Investor Presentation – Kadant Inc. – slide 31
    Second Quarter 2015 Financial Summary ( Millions, except per share amount and %) Q2 2015 Q2 2014 % Change Revenue 98.3 104.8 (6.2)% Gross Profit Margin 46.5% 43.0% n.m. Operating Income 12.6 12.0 5.0% Adjusted Operating Income* 12.9…
  32. August 2015 Investor Presentation – Kadant Inc. – slide 32
    2014 Financial Summary ( Millions, except per share amount and %) 2014 2013 % Change Revenue 402.1 344.5 16.7% Gross Profit Margin 44.4% 45.8% n.m. Operating Income 42.1 33.3 26.4% Adjusted Operating Income1 45.5 36.0 26.3%…
  33. August 2015 Investor Presentation – Kadant Inc. – slide 33
    FX Translation and Acquisition Impact Parts & Consumables Parts & Consumables Q2 2015, in millions except EPS Revenue Adjusted EPS4 Bookings Revenue Bookings As Reported 98.3 0.78 93.7 65.3 62.4 Growth1 6.2% 5.4% 18.5% 3.7% 6.1%…
  34. August 2015 Investor Presentation – Kadant Inc. – slide 34
    Balance Sheet Data ( Millions) 2Q15 4Q14 Cash, Cash Equivalents, Restricted Cash 48.6 45.8 Accounts Receivable, net 58.1 58.5 Inventories 64.2 55.2 Property, Plant, and Equipment, net 43.7 45.0 Intangible Assets 42.1 47.0 Goodwill…
  35. August 2015 Investor Presentation – Kadant Inc. – slide 35
    Bookings and Revenues US (millions) 120 100 80 60 Bookings Revenues 40 20 0 36 KAI Investor PresentationAugust 2015 2015 Kadant Inc. All rights reserved.
  36. August 2015 Investor Presentation – Kadant Inc. – slide 36
    Parts and Consumables Bookings and Revenues US (millions) 70 60 50 40 Bookings 30 Revenues 20 10 0 37 KAI Investor PresentationAugust 2015 2015 Kadant Inc. All rights reserved.
  37. August 2015 Investor Presentation – Kadant Inc. – slide 37
    Backlog US (millions) 160 140 136.4132.4 127.9 128.9127.7 124.2 120.0 118.8 120 109.3 107.7 106.3 102.8 98.5 97.6 100 94.3 94.4 93.1 78.6 77.5 80 72.1 69.3 67.8 61.5 60 54.3 46.3 44.8 40 20 38 KAI…
  38. August 2015 Investor Presentation – Kadant Inc. – slide 38
    FiscalYear Gross Margins 47% 45.8% 45% 44.4% 43.9% 43.9% 43.3% 43% 41.3% 41% 40.3% 39% 37.9% 37% 35% 2007 2008 2009 2010 2011 2012 2013 2014 39 KAI Investor PresentationAugust 2015 2015 Kadant Inc. All rights…
  39. August 2015 Investor Presentation – Kadant Inc. – slide 39
    Quarterly Gross Margins 50% 48.6% 48.1% 48% 47.6% 47.3% 46.5% 46% 45.7% 45.6% 45.2% 44.7% 44.7% 43.7% 43.9% 43.9% 44% 43.4% 43.0% 43.0% 42.7% 42% 40% 38.6% 38% 36% 40 KAI Investor PresentationAugust 2015 2015 Kadant…
  40. August 2015 Investor Presentation – Kadant Inc. – slide 40
    FiscalYear SG&A US (millions) SG&A SG&A as a % of Revenues 130 40% 110 35% 90 30% 70 50 25% 2007 2008 2009 2010 2011 2012 2013 2014 41 KAI Investor PresentationAugust 2015 2015 Kadant Inc. All rights…
  41. August 2015 Investor Presentation – Kadant Inc. – slide 41
    Quarterly SG&A SG&A SG&A as a % of Revenues 40 45% 30 40% 20 35% 10 30% 0 25% 42 KAI Investor PresentationAugust 2015 2015 Kadant Inc. All rights reserved.
  42. August 2015 Investor Presentation – Kadant Inc. – slide 42
    Cash Flow 2Q15 ( Millions) YTD 2014 2013 Income from Continuing Operations 15.5 29.1 23.7 Depreciation and Amortization 5.6 11.2 9.8 StockBased Compensation 3.2 5.8 5.2 Other Items (1.5) 2.5 (2.3) Change in Current Assets &…
  43. August 2015 Investor Presentation – Kadant Inc. – slide 43
    Free Cash Flow US (millions) 42.1 40.3 40 33.7 28.6 30 26.3 26.2 24.9 20 15.8 10.7 13.2 10 8.2 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Free cash flow is defined as cash flows from continuing…
  44. August 2015 Investor Presentation – Kadant Inc. – slide 44
    Stock Repurchases and Dividends 2Q15 ( in Millions, except per share amounts) 2014 2013 2012 2011 YTD Common Stock Repurchases 4.0 15.1 5.4 14.5 16.1 Average Price per Share 46.70 37.36 30.67 22.87 21.52 Cash Dividends 3.5 6.4…
  45. August 2015 Investor Presentation – Kadant Inc. – slide 45
    Investment Highlights Strong market position Parts and consumables business strong and growing Internal and external growth opportunities Low cost manufacturing Global distribution and service network Strong cash flows Healthy…
  46. August 2015 Investor Presentation – Kadant Inc. – slide 46
    Kadant Investor Presentation August 2015 KAI Investor PresentationAugust 2015 2015 Kadant Inc. All rights reserved.
  47. August 2015 Investor Presentation – Kadant Inc. – slide 47
    APPENDIX 48 KAI Investor PresentationAugust 2015 2015 Kadant Inc. All rights reserved.
  48. August 2015 Investor Presentation – Kadant Inc. – slide 48
    2Q14 to 2Q15 Diluted EPS from Continuing Operations 1.25 0.03 0.02 0.01 (0.23) 1.00 0.23 0.76 0.75 0.70 0.50 0.25 0.00 49 KAI Investor PresentationAugust 2015 2015 Kadant Inc. All rights reserved.
  49. August 2015 Investor Presentation – Kadant Inc. – slide 49
    Key Working Capital Metrics 2Q15 1Q15 2Q14 Days in Receivables 57 63 61 Days in Inventory 107 109 92 Days in Payables 49 50 44 Days in Receivables Days in Inventory Days in Payables 120 107 100 109 92 80 61 60 63…
  50. August 2015 Investor Presentation – Kadant Inc. – slide 50
    Working Capital and Cash Conversion Days 2Q15 1Q15 2Q14 Working Capital % LTM Revenues* 15.8% 15.4% 15.7% Cash Conversion Days** 115 days 122 days 109 days *Working Capital is defined as current assets less current liabilities,…
  51. August 2015 Investor Presentation – Kadant Inc. – slide 51
    Cash and Debt ( Millions) 2Q15 1Q15 2Q14 Cash, cash equivalents, and restricted cash 48.6 43.2 37.7 Debt (28.5) (30.7) (28.2) Net Cash 20.1 12.5 9.5 60 58.7 51.8 47.7 48.5 50 41.5 40.0 40 35.4 30.7 30.9 30.1 30…
  52. August 2015 Investor Presentation – Kadant Inc. – slide 52
    Leverage Ratio Debt/EBITDA * 1.00 0.75 0.50 0.37 0.25 0.00 * Calculated by adding or subtracting certain items, as required by our Credit Facility, from Adjusted EBITDA. Under our new Credit Facility entered…

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