Q1 2024 Kadant Inc Earnings Call Transcript
Key Points
- Kadant Inc (KAI) reported a record Q1 revenue of $249 million, an 8% increase, driven by recent acquisitions and strong performance in the Industrial Processing segment.
- Adjusted EBITDA for Q1 was $52 million, representing 21% of revenue, with all operating segments delivering excellent adjusted EBITDA margin performance despite inflationary pressures.
- The company's aftermarket parts revenue increased by 13% to a record $171 million, making up 69% of Q1 revenue.
- Kadant Inc (KAI) successfully integrated recent acquisitions Key Knife and KWS, which contributed positively to the financial results in the first quarter.
- Gross margin improved to 44.6% in Q1 2024, up from 44.4% in Q1 2023, attributed to higher margins in the Industrial Processing segment and a favorable mix of capital projects.
- Cash flow in Q1 decreased by 38% to $23 million compared to the previous year's record cash flow for the same quarter.
- Bookings softened in Q1 primarily due to reduced capital project activity, with bookings down 9% compared to Q1 of the previous year.
- Q1 revenue in the Flow Control segment declined by 3% to $87 million, partly due to fewer capital shipments.
- Adjusted EBITDA margin in the Flow Control segment decreased to 27.8%, down due to lower operating leverage.
- Free cash flow in Q1 was $17 million, down 49% compared to the first quarter of the previous year.
Good day, and thank you for standing by. Welcome to Kadant First Quarter 2024 Earnings Conference Call. (Operator Instructions)
Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Michael McKenney, Executive Vice President and Chief Financial Officer. Please go ahead, sir.
Thank you, Norma. Good morning, everyone, and welcome to Kadant's First Quarter 2024 Earnings Call. With me on the call today is Jeff Powell, our President and Chief Executive Officer.
Before we begin, let me read our safe harbor statement. Various remarks that we may make today about Kadant's future plans and expectations, financial and operating results and prospects are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results to differ
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
