Kennametal Inc. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Kennametal Inc. has submitted its Q2 2024 10-Q filing, detailing financial performance and operations as of December 31, 2023.</b>

AI Summary

KENNAMETAL INC (KMT) filed a Quarterly Report (10-Q) with the SEC on February 7, 2024. Kennametal Inc. filed its quarterly report (10-Q) for the period ending December 31, 2023. The filing covers the fiscal second quarter of 2024. The company's fiscal year ends on June 30th. The filing was submitted on February 7, 2024. The company's SIC code is 3541 (Machine Tools, Metal Cutting).

Why It Matters

For investors and stakeholders tracking KENNAMETAL INC, this filing contains several important signals. This 10-Q filing provides investors and analysts with the latest financial data and operational updates for Kennametal Inc., crucial for assessing the company's current performance and future outlook. Understanding the details within this report is essential for making informed investment decisions regarding Kennametal Inc. (KMT) stock.

Risk Assessment

Risk Level: low — KENNAMETAL INC shows low risk based on this filing. The filing is a standard 10-Q, providing routine financial disclosures without immediate red flags, indicating a low level of immediate risk from this specific filing.

Analyst Insight

Review the detailed financial statements and management discussion within the 10-Q to identify any significant trends or changes in Kennametal Inc.'s performance.

Key Numbers

• 2023-12-31 — Reporting Period End Date (Conformed Period of Report)
• 2024-02-07 — Filing Date (Filed as of Date)
• 0630 — Fiscal Year End (Fiscal Year End)

Key Players & Entities

• KENNAMETAL INC (company) — Filer
• KMT (company) — Ticker symbol

Forward-Looking Statements

• Kennametal will continue to utilize range forward contracts to manage commodity price risk in the next fiscal quarter. (KENNAMETAL INC) — high confidence, target: 2024-03-31
• The company's reliance on currency forward contracts will remain significant due to its international operations. (KENNAMETAL INC) — medium confidence, target: 2024-06-30

FAQ

Industry Context

Kennametal Inc. operates in the machine tools and metal cutting industry, providing industrial tooling, engineering, and manufacturing solutions.

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 the financial statements for revenue, net income, and cash flow trends.
2. Review management's discussion and analysis (MD&A) for insights into business performance and outlook.
3. Check for any significant changes in risk factors or legal proceedings mentioned in the report.

Year-Over-Year Comparison

This is the 10-Q filing for the period ending December 31, 2023, following the previous 10-Q filing for the period ending September 30, 2023.

Key Financial Figures

• $1.25 — ch registered Capital Stock, par value $1.25 per share KMT New York Stock Exchange
• $20 m — of approximately $ 25 million, up from $20 million, were recorded through December 3

Filing Documents

• kmt-20231231.htm (10-Q) — 1437KB
• kmt1231202310-qex311.htm (EX-31.1) — 10KB
• kmt1231202310-qex312.htm (EX-31.2) — 10KB
• kmt1231202310-qex321.htm (EX-32.1) — 6KB
• 0000055242-24-000008.txt (&nbsp;) — 8719KB
• kmt-20231231.xsd (EX-101.SCH) — 48KB
• kmt-20231231_cal.xml (EX-101.CAL) — 68KB
• kmt-20231231_def.xml (EX-101.DEF) — 386KB
• kmt-20231231_lab.xml (EX-101.LAB) — 783KB
• kmt-20231231_pre.xml (EX-101.PRE) — 577KB
• kmt-20231231_htm.xml (XML) — 1437KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 1. Financial Statements Condensed Consolidated Statements of Income (Unaudited) Three and six months ended December 31, 2023 and 2022 4 Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three and six months ended December 31, 2023 and 2022 4 Condensed Consolidated Balance Sheets (Unaudited) December 31, 2023 and June 30, 2023 5 Condensed Consolidated Statements of Cash Flow (Unaudited) Six months ended December 31, 2023 and 2022 6 Notes to Condensed Consolidated Financial Statements (Unaudited) 7 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 22 3. Quantitative and Qualitative Disclosures About Market Risk 33 4. Controls and Procedures 33 5. Other Information 33

- OTHER INFORMATION

PART II - OTHER INFORMATION 1. Legal Proceedings 34 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 34 6. Exhibits 35

Signatures

Signatures 36 2 Table of Contents FORWARD-LOOKING INFORMATION This Quarterly Report on Form 10-Q contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements that do not relate strictly to historical or current facts. You can identify forward-looking statements by words such as "should," "anticipate," "estimate," "approximate," "expect," "may," "will," "project," "intend," "plan," "believe" and other words of similar meaning and expression in connection with any discussion of future operating or financial performance or events. We have also included forward-looking statements in this Quarterly Report on Form 10-Q concerning, among other things, our strategy, goals, plans and projections regarding our financial position, liquidity and capital resources, results of operations, market position and product development. These statements are based on current estimates that involve inherent risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should the assumptions underlying the forward-looking statements prove incorrect, our actual results could vary materially from our current expectations. There are a number of factors that could cause our actual results to differ from those indicated in the forward-looking statements. They include: uncertainties related to changes in macroeconomic and/or global conditions, including as a result of increased inflation and Russia's invasion of Ukraine and the resulting sanctions on Russia; the adverse effects of the COVID-19 pandemic and its impacts on our business operations, financial results and financial position and on the industries in which we operate and the global economy generally; other economic recession; our ability to achieve all anticipated benefits of restructuring, simplification and modernization initiatives; Co

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS KENNAMETAL INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Three Months Ended December 31, Six Months Ended December 31, (in thousands, except per share amounts) 2023 2022 2023 2022 Sales $ 495,320 $ 497,121 $ 987,796 $ 991,913 Cost of goods sold 355,723 354,231 685,301 689,055 Gross profit 139,597 142,890 302,495 302,858 Operating expense 107,342 105,756 218,991 214,035 Restructuring and other charges, net (Note 6) 1,033 ( 1,505 ) 4,119 ( 1,505 ) Amortization of intangibles 2,743 3,148 5,788 6,312 Operating income 28,479 35,491 73,597 84,016 Interest expense 6,847 7,015 13,447 13,652 Other (income) expense, net ( 687 ) 588 ( 597 ) 1,597 Income before income taxes 22,319 27,888 60,747 68,767 (Benefit from) provision for income taxes ( 2,009 ) 4,964 6,050 16,206 Net income 24,328 22,924 54,697 52,561 Less: Net income attributable to noncontrolling interests 1,220 1,025 1,532 2,466 Net income attributable to Kennametal $ 23,108 $ 21,899 $ 53,165 $ 50,095 PER SHARE DATA ATTRIBUTABLE TO KENNAMETAL SHAREHOLDERS Basic earnings per share $ 0.29 $ 0.27 $ 0.67 $ 0.62 Diluted earnings per share $ 0.29 $ 0.27 $ 0.66 $ 0.61 Basic weighted average shares outstanding 79,700 80,737 79,863 81,141 Diluted weighted average shares outstanding 80,114 81,237 80,395 81,677 KENNAMETAL INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended December 31, Six Months Ended December 31, (in thousands) 2023 2022 2023 2022 Net income $ 24,328 $ 22,924 $ 54,697 $ 52,561 Other comprehensive income, net of tax Unrealized loss on derivatives designated and qualified as cash flow hedges ( 59 ) — ( 59 ) — Reclassification of unrealized gain on derivatives designated and qualified as cash flow hedges ( 192 ) ( 192 ) ( 385 ) ( 385 ) Unrecognized net pension and other postretirement benefit plans loss ( 1,752 ) ( 3,371 ) ( 235 ) ( 47 ) Reclassification of net pension and other postretirem

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