Kadant Inc. (NYSE:KAI) Q4 2019 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 11:00 am ET


Kadant Inc. (NYSE:KAI) Q4 2019 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Q4, 2019 Kadant Inc. Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to turn the conference over to your host, Mr. Michael McKenney, Executive Vice President and Chief Financial Officer. Sir, please go ahead.

Michael J. McKenney

Thank you, Katrina. Good morning, everyone, and welcome to Kadant's Fourth Quarter and Full Year 2019 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 materially from these forward-looking statements as a result of various important factors, including those outlined at the beginning of our slide presentation and those discussed under the heading Risk Factors in our Annual Report on Form 10-K for the fiscal year ended December 29th 2018 and subsequent filings with the Securities and Exchange Commission.

In addition, any forward-looking statements we make during this webcast represent our views and estimates only as of today. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so even if our views or estimates change.

During this webcast, we'll refer to some non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with Generally Accepted Accounting principles. A reconciliation of the non-GAAP financial measures to most directly comparable GAAP measures is contained in our fourth quarter and full year earnings press release and the slides presented on the webcast and discussed in the conference call, which are available in the Investor section of our website at www.kadant.com.

Finally, I wanted to note that when we refer to GAAP earnings per share or EPS and adjusted EPS on this call, we are referring to each of these measures as calculated on a diluted basis.

With that, I'll turn the call over to Jeff Powell, who will give you an update on Kadant's business and future prospects. Following Jeff's remarks, I'll give an overview of our financial results for the quarter and we will then have a Q&A session. Jeff?

Jeffrey L. Powell

Thanks, Mike. Hello everyone. Thank you for joining us this morning to review our fourth quarter and full year results and discuss our business outlook for 2020. The fourth quarter was a solid finish to another record setting year. We had record full year results in bookings, revenue, adjusted EBITDA, adjusted EPS and operating and free cash flow. We also fully integrated our Material Handling acquisition into our business and are pleased with the performance of this acquisition and its contribution to our business.

I'll begin my review with the financial