Kadant Inc. (NYSE:KAI) reported its financial results for the first quarter ended March 31, 2012.
First Quarter 2012 Financial Highlights
- GAAP diluted earnings per share (EPS) from continuing operations was $0.61 in the first quarter of 2012, an increase of 30% over $0.47 in the first quarter of 2011.
- Revenues were $84 million in the quarter, increasing 17% over the first quarter of 2011.
- Gross profit margins were 45.6% in the first quarter of 2012, one of the highest levels in the Company’s history, although lower than the record 47.6% achieved in the first quarter of 2011.
- Net income was $7.1 million in the first quarter of 2012, up 22% from the first quarter of 2011.
- EBITDA was a record $12.6 million in the first quarter of 2012, up 24% over the first quarter of 2011, and was 15.0% of revenues compared to 14.2% last year.
- Repurchases of common stock were $1.3 million in the first quarter of 2012.
Note: EBITDA is a non-GAAP measure that excludes certain items as detailed later in this press release under the heading “Use of Non-GAAP Financial Measures” and in the reconciliation tables below.
Management Commentary“We are off to a great start in 2012,” said Jonathan W. Painter, president and chief executive officer of Kadant. “Diluted EPS from continuing operations was $0.61 in the first quarter of 2012 and included $0.03 of expense associated with a facility consolidation that was not included in our guidance, which was $0.41 to $0.43. The increase over guidance was largely due to higher than expected gross profit margins in all our major product lines. “Revenues in the first quarter of 2012 were $84 million, an increase of 17 percent over last year, and were at the high end of our guidance, which was $82 to $84 million. The revenue increase over last year was primarily the result of significant increases in our stock-preparation and water-management product lines, which increased 40 percent and 59 percent, respectively. The increase in our stock-preparation product line was entirely due to higher capital sales and was well distributed throughout our operations in North America, Europe, and China. Water-management revenues were also strong in North America and Europe and included $1.6 million from Kadant M-Clean, which we acquired in May 2011.