Operating income from continuing operations was $8.4 million in the 2Q 2013, including a $1.7 million gain on the sale of assets and a $1.9 million acquisition-related restructuring charge, compared to $9.4 million in the 2Q 2012.
Net income from continuing operations was $5.8 million in the 2Q 2013, or $0.51 per diluted share, compared to $6.5 million, or $0.56 per diluted share, in the 2Q 2012. Net income from continuing operations in the 2Q 2013 included a $1.3 million, or $0.12 per diluted share, after-tax gain on the sale of assets and a $1.3 million, or $0.12 per diluted share, after-tax restructuring charge. Adjusted net income, a non-GAAP measure, was $5.8 million, or $0.51 per diluted share, in the 2Q 2013 compared to $6.5 million, or $0.56 per diluted share, in the 2Q 2012.
“We were pleased we exceeded our diluted EPS guidance on an adjusted basis,” said Jonathan W. Painter, president and CEO of Kadant. “We also had excellent gross margins and cash flows in the 2Q 2013. Gross profit margins in the 2Q 2013 were a record 48.6%. Operating cash flows from continuing operations were $11.1 million in the 2Q 2013, increasing 30% over the 2Q 2012. We ended the quarter with net cash (cash less debt) of $48.5 million, an increase of 61% over $30.1 million in the 2Q 2012. Significantly, our operating cash flows from continuing operations over the last twelve months were $44.0 million, reflecting the strength of our business.
“Consolidated bookings increased to $87.1 million in the 2Q compared to $77.4 million in the 2Q 2012, including a $7.4 million increase from acquisitions and a 54% increase in China bookings. We ended the quarter with a strong backlog of $106.3 million, including $9 million from acquisitions. After the quarter closed, we booked orders for paper drying and fabric cleaning systems in Europe with a combined value of $4.4 million.”
Kadant Inc. is a leading supplier to the global pulp and paper industry.