Kadant (KAI) has reported 5.95 percent rise in profit for the quarter ended Oct. 01, 2016. The company has earned $9.16 million, or $0.82 a share in the quarter, compared with $8.64 million, or $0.78 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $9.01 million, or $0.81 a share compared with $8.65 million or $0.78 a share, a year ago.
Revenue during the quarter grew 14.78 percent to $105.52 million from $91.93 million in the previous year period. Gross margin for the quarter contracted 194 basis points over the previous year period to 45.56 percent. Total expenses were 88.10 percent of quarterly revenues, up from 86.21 percent for the same period last year. That has resulted in a contraction of 189 basis points in operating margin to 11.90 percent.
Operating income for the quarter was $12.56 million, compared with $12.68 million in the previous year period.
However, the adjusted operating income for the quarter was almost stable at $12.73 million when compared with the prior year period. At the same time, adjusted operating margin contracted 173 basis points in the quarter to 12.06 percent from 13.79 percent in the last year period.
"This was another quarter of strong performance for Kadant," said Jonathan W. Painter, president and chief executive officer of Kadant Inc. "We achieved revenue growth across all of our three largest product lines. Revenue increases in our Doctoring, Cleaning, & Filtration and Fluid-Handling product lines resulted from organic growth, while our Stock-Preparation product line’s revenue growth was driven by our April 2016 acquisition of PAAL. PAAL is performing well and we are working on integrating the company into our global operating platform to produce longer-term revenue and cost synergies. This combination of acquisition and organic growth is fundamental to our strategic growth plan and is representative of how we see our business developing over the next several years.
For the fourth-quarter, Kadant forecasts revenue to be in the range of $98 million to $102 million. The company expects diluted earnings per share to be in the range of $0.57 to $0.63.
For fiscal year 2016, Kadant forecasts revenue to be in the range of $412 million to $416 million. The company expects diluted earnings per share to be in the range of $2.76 to $2.82, the company expects diluted earnings per share to be in the range of $2.99 to $3.05 on adjusted basis.
Debt increases substantiallyKadant has witnessed an increase in total debt over the last one year. It stood at $63.52 million as on Oct. 01, 2016, up 116.23 percent or $34.14 million from $29.38 million on Oct. 03, 2015. Total debt was 13.12 percent of total assets as on Oct. 01, 2016, compared with 6.95 percent on Oct. 03, 2015. Debt to equity ratio was at 0.22 as on Oct. 01, 2016, up from 0.11 as on Oct. 03, 2015. Interest coverage ratio deteriorated to 41.18 for the quarter from 53.06 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]
