Kadant Inc. (KAI) has reported 25.54 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $7.73 million, or $0.69 a share in the quarter, compared with $10.38 million, or $0.94 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $7.73 million, or $0.69 a share compared with $10.51 million or $0.95 a share, a year ago. Revenue during the quarter dropped 6.84 percent to $100.24 million from $107.60 million in the previous year period. Gross margin for the quarter expanded 285 basis points over the previous year period to 45.96 percent. Total expenses were 89.35 percent of quarterly revenues, up from 86.59 percent for the same period last year. That has resulted in a contraction of 276 basis points in operating margin to 10.65 percent.
Operating income for the quarter was $10.68 million, compared with $14.42 million in the previous year period.
However, the adjusted operating income for the quarter stood at $10.68 million compared to $14.64 million in the prior year period. At the same time, adjusted operating margin contracted 296 basis points in the quarter to 10.65 percent from 13.61 percent in the last year period.
"We are pleased to report fourth quarter earnings that exceeded our guidance and represented a strong finish to 2016 with record full year revenue and adjusted EBITDA," said Jonathan W. Painter, president and chief executive officer. "Although revenue was down from a record performance in last years fourth quarter, we had a 10 percent increase in revenue from parts and consumables, which represented 64 percent of fourth quarter revenue. This favorable revenue mix led to a 290 basis point increase in gross margin.
For the first-quarter, Kadant Inc. projects revenue to be in the range of $97 million to $100 million. Kadant Inc. projects revenue to be in the range of $423 million to $433 million for financial year 2017. The company forecasts diluted earnings per share to be in the range of $0.62 to $0.66 for the first-quarter. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $3.13 to $3.23.
Debt increases substantially
Kadant Inc. has witnessed an increase in total debt over the last one year. It stood at $66.41 million as on Dec. 31, 2016, up 112.52 percent or $35.16 million from $31.25 million on Jan. 02, 2016. Total debt was 14.11 percent of total assets as on Dec. 31, 2016, compared with 7.52 percent on Jan. 02, 2016. Debt to equity ratio was at 0.23 as on Dec. 31, 2016, up from 0.12 as on Jan. 02, 2016. Interest coverage ratio deteriorated to 28.17 for the quarter from 58.40 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
