Kadant Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Kadant Inc. filed its 2023 10-K report detailing its annual financial performance and business operations.</b>

AI Summary

KADANT INC (KAI) filed a Annual Report (10-K) with the SEC on February 27, 2024. Kadant Inc. reported its fiscal year 2023 results on February 27, 2024. The filing covers the fiscal year ending December 30, 2023. The company's principal executive offices are located at One Technology Park Drive, Westford, MA. Kadant Inc. was formerly known as Thermo Fibertek Inc., with a name change on March 28, 1993. The filing is a 10-K report under the Securities Exchange Act of 1934.

Why It Matters

For investors and stakeholders tracking KADANT INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Kadant's financial health, operational performance, and strategic direction for the fiscal year 2023, crucial for investors and stakeholders to assess the company's current standing and future prospects. Understanding the details within this filing is essential for evaluating Kadant's market position, competitive landscape, and potential risks and opportunities in the special industry machinery sector.

Risk Assessment

Risk Level: medium — KADANT INC shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine annual report. While it contains detailed financial information, it does not indicate any immediate or extraordinary risks beyond those typically associated with publicly traded companies in the industrial sector.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand Kadant's performance and outlook for the upcoming fiscal year.

Key Numbers

• 20231230 — Fiscal Year End (Reporting period)
• 2024-02-27 — Filing Date (Date of submission)
• 19930328 — Date of Name Change (Former company name)

Key Players & Entities

• KADANT INC (company) — Filer
• THERMO FIBERTEK INC (company) — Former company name
• WESTFORD (location) — Business address city
• MA (location) — Business address state
• 01886 (location) — Business address zip
• 978-776-2000 (phone) — Business phone

FAQ

Industry Context

Kadant Inc. operates in the Special Industry Machinery sector, manufacturing equipment and providing services for papermaking, process industries, and metals production.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit regular financial disclosures to the SEC.

What Investors Should Do

1. Analyze Kadant's financial statements for revenue, net income, and other key performance indicators.
2. Review the Management's Discussion and Analysis (MD&A) section for insights into business trends and strategies.
3. Examine the Risk Factors section for potential challenges and uncertainties facing the company.

Key Dates

• 2023-12-30: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-27: Filing Date — Date Kadant Inc. submitted its 10-K report to the SEC.

Year-Over-Year Comparison

This is the initial filing analyzed, so no comparison to a previous filing is available.

Key Financial Figures

• $156.0 million — ed December 22, 2023, for approximately $156.0 million in cash, subject to certain customary a
• $84.0 million — Company, Ltd. (KWS), for approximately $84.0 million in cash, subject to certain customary a
• $13.6 million — research and development expenses were $13.6 million in 2023, $12.7 million in 2022, and $11
• $12.7 million — nt expenses were $13.6 million in 2023, $12.7 million in 2022, and $11.4 million in 2021. S
• $11.4 million — ion in 2023, $12.7 million in 2022, and $11.4 million in 2021. Sales and Marketing We mark

Filing Documents

• kai-20231230.htm (10-K) — 2353KB
• kai2023ex21.htm (EX-2.1) — 711KB
• kai2023ex21_subsidiaries.htm (EX-21) — 107KB
• kai2023ex23.htm (EX-23) — 2KB
• kai2023ex311.htm (EX-31.1) — 10KB
• kai2023ex312.htm (EX-31.2) — 10KB
• kai2023ex32.htm (EX-32) — 7KB
• kai2023ex97.htm (EX-97) — 22KB
• kai-20231230_g1.jpg (GRAPHIC) — 130KB
• 0000886346-24-000026.txt (&nbsp;) — 15114KB
• kai-20231230.xsd (EX-101.SCH) — 77KB
• kai-20231230_cal.xml (EX-101.CAL) — 145KB
• kai-20231230_def.xml (EX-101.DEF) — 442KB
• kai-20231230_lab.xml (EX-101.LAB) — 1144KB
• kai-20231230_pre.xml (EX-101.PRE) — 790KB
• kai-20231230_htm.xml (XML) — 2488KB

Risk Factors

Item 1A. Risk Factors 8

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 21 Item 1C. Cybersecurity 21

Properties

Item 2. Properties 22

Legal Proceedings

Item 3. Legal Proceedings 23

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 23 PART II Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 23

[Reserved]

Item 6. [Reserved] 23

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 24

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 33

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 34

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 34

Controls and Procedures

Item 9A. Controls and Procedures 34

Other Information

Item 9B. Other Information 35

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 35 PART III

Directors, Executive Officers, and Corporate Governance

Item 10. Directors, Executive Officers, and Corporate Governance 35

Executive Compensation

Item 11. Executive Compensation 35

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 35

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 36

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 36 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 36

Form 10-K Summary

Item 16. Form 10-K Summary 40 Table of Contents Kadant Inc. PART I

Forward-Looking Statements

Forward-Looking Statements This Annual Report on Form 10-K and the documents we incorporate by reference in this report include forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act), and Section 27A of the Securities Act of 1933, as amended. These forward-looking statements are not statements of historical fact, and may include statements regarding possible or assumed future results of operations. Forward-looking statements are subject to risks and uncertainties and are based on the beliefs and assumptions of our management, using information currently available to our management. When we use words such as "believes," "expects," "anticipates," "intends," "plans," "estimates," "seeks," "should," "likely," "will," "would," "may," "continue," "could," or similar expressions, we are making forward-looking statements. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties, and assumptions. Our future results of operations may differ materially from those expressed in the forward-looking statements. Many of the important factors that will determine these results and values are beyond our ability to control or predict. You should not put undue reliance on any forward-looking statements. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. For a discussion of important factors that may cause our actual results to differ materially from those suggested by the forward-looking statements, you should read carefully the section captioned "Risk Factors" in Part I, Item 1A , of this report.

Business

Item 1. Business Throughout this Annual Report on Form 10-K, when we use the terms "we," "us," "our," "Registrant," and the "Company," we mean Kadant Inc., and its consolidated subsidiaries, taken as a whole, unless the context otherwise indicates. Kadant Inc. trades on the New York Stock Exchange under the ticker symbol "KAI." Unless otherwise noted, references to 2023, 2022, and 2021 in this Annual Report on Form 10-K are to our fiscal years ended December 30, 2023, December 31, 2022, and January 1, 2022, respectively. Description of Our Business We are a global supplier of technologies and engineered systems that drive Sustainable Industrial Processing. Our products and services play an integral role in enhancing efficiency, optimizing energy utilization, and maximizing productivity in process industries while helping our customers advance their sustainability initiatives with products that reduce waste or generate more yield with fewer inputs, particularly fiber, energy, and water. Producing more while consuming less is a core aspect of Sustainable Industrial Processing and a major element of the strategic focus of our three reportable operating segments: Flow Control, Industrial Processing, and Material Handling. We have a long and well-established history of developing, manufacturing, and servicing a range of products and equipment used in process industries such as paper, packaging, and tissue; wood products; mining; metals; food processing; and recycling and waste management, among others. Some of our businesses or their predecessor companies have been in operation for more than 100 years. Our diverse customer base includes global and regional industrial manufacturers and distributors who participate in the broader resource transformation sector. We believe we have one of the largest installed bases of equipment in the markets we serve around the globe. We expect that a significant driver of our long-term growth will be the acquisition of businesses a

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View this 10-K filing on SEC EDGAR