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Dec 28, 2019

Kadant Q4 2019 Earnings Report

Kadant's Q4 2019 results were reported, featuring an 11% increase in revenue, a decrease in GAAP diluted EPS, and a rise in bookings.

Key Takeaways

Kadant reported solid Q4 2019 results with an 11% increase in revenue to $183 million and a 9% increase in bookings to $160 million. However, GAAP diluted EPS decreased to $0.76, and net income also decreased to $8.7 million. Adjusted EBITDA saw a slight increase of 1% to $32 million.

Revenue increased by 11% to $183 million.

GAAP diluted EPS decreased to $0.76.

Bookings increased by 9% to $160 million.

Adjusted EBITDA increased by 1% to $32 million.

Total Revenue
$183M
Previous year: $164M
+11.4%
EPS
$1.32
Previous year: $1.66
-20.5%
Adjusted EBITDA
$32.2M
Bookings
$160M
Gross Margin
40.9%
Gross Profit
$74.6M
Previous year: $70.9M
+5.2%
Cash and Equivalents
$68.3M
Previous year: $45.8M
+49.0%
Free Cash Flow
$35.5M
Previous year: $6.69M
+430.8%
Total Assets
$939M
Previous year: $726M
+29.4%

Kadant

Kadant

Kadant Revenue by Segment

Kadant Revenue by Geographic Location

Forward Guidance

Kadant expects full year GAAP diluted EPS of $4.98 to $5.08 in 2020 on revenue of $690 to $700 million. For the first quarter of 2020, the company expects GAAP diluted EPS of $0.80 to $1.08 on revenue of $153 to $163 million.

Positive Outlook

  • Healthy balance sheet
  • Strong operating cash flows
  • Full year GAAP diluted EPS of $4.98 to $5.08 expected in 2020
  • Revenue of $690 to $700 million expected in 2020
  • Adjusted diluted EPS of $5.00 to $5.10 expected in 2020

Challenges Ahead

  • Challenging environment for industrial markets in 2020
  • Uncertainty surrounding the impact of the coronavirus in China
  • Government-mandated business closures in China
  • Potential impact on timing of shipments
  • Potential broader impact on customers or suppliers

Revenue & Expenses

Visualization of income flow from segment revenue to net income