KAI - Earnings call transcript Q1 2022

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Operator

Good day. And thank you for standing by. Welcome to the Q1 2022 Kadant Inc. Earnings Conference Call. [Operator Instructions] Please be advised that today's program may be recorded. conference Vice your Officer. President the Michael speaker hand Executive McKenney, and now over first to today, I’ll Chief Financial you may Sir, begin.

Michael McKenney

first is Jeff Good welcome our President With Peter. everyone, Executive Powell, on quarter Officer. Chief Kadant's me today you, call. XXXX call Thank the and earnings morning, to and

prospects me for forward-looking financial safe make risks begin, those a factors, Exchange harbor subsequent forward-looking and of uncertainties in on and Kadant's Risk cause about the for various Before known Commission. important our and today to harbor the remarks at of outlined results those plans and Various statements heading provisions report and statements XXXX. with as January X, are let statements Private Reform our may future we results expectations, are discussed from statement. the actual safe read our slide and Securities unknown including subject our These result Factors and Securities purposes Act operating XXXX and annual filings beginning to may the ended forward-looking the that of differ under we the presentation fiscal of year that Litigation XX-K under these Form materially

any and statements webcast estimates In this addition, views forward-looking we only our today. represent during made as of

if do even some the future, in so statements views we change. point may any we at While disclaim obligation to update to forward-looking elect or specifically our estimates

financial and slides the section of reconciliation first some with non-GAAP conference measures accepted directly contained press quarter is are release, measures our not accordance available are webcast and in refer investor the generally the During non-GAAP presented the most this A prepared principles. in webcast, earnings website@www.kadant.com. non-GAAP financial to the which call, to These GAAP measures. the comparable in our we accounting on discussed in of measures

EPS or per will a basis. call on an call, refer update diluted you when these and Kadant’s and referring to With prospects. this GAAP business of turn Finally, who future to on share, to we I'll that note calculated wanted Powell, each give the adjusted Jeff that, I earnings EPS as on to over measures

I and remarks, for will a our Q&A then give of Jeff? financial Jeff’s results an the Following overview we will session. quarter, have

Jeff Powell

for demand quarter Thanks, I'll our adjusted our opportunities. on capital capitalize first in regions details flow performance. segments. results order that Mike. review sheet parts Thank us business world, activity, had to this activity XXXX Hello, by EBITDA our when this last was which demand momentum high Business led especially bookings for project industrial across in strong We activity And our to solid segment, our everyone. quarter. processes XXXX. more continued segments. us true I to operating provide on and the project in you quarter. cash all strong Capital activity first healthy and revenue morning discuss and from review quarterly balance have for excellent outlook robust its start our with had an was well to most driven growth and operating which new and positioned record the our Overall, was great of joining another

financial that in complex global China, chain out performance, components. to more with recent we are situation. to the to push to expected country's challenges by and been severely throughout These materials continued supply Ongoing the and limited supply affected for ports extended shutdowns busiest deliveries on an moving further have period. global the of this how on chain QX Before have our I continuing want constraints comment manage

promises significant helps temporary interconnected to global to our a the supply chain challenge, our and us structure creating delivery alleviate shutdowns be While continues to delays, the these our decentralized to teams customers. logistical keep is quarter and by reflected are results issues proactively our in This and businesses. needs. our execution first managing operating resilience tirelessly to meet Operations solid working customers’ our these work

performance. QX slide to and financial now Turning X our

see metrics increase financial compared in we of these last year. significant QX had can to across You

record and the to up more highlights first to compared of XX% same up was XXXX up period QX XX% revenue of impact $XXX last last year. quarter One notable unfavorable of million, record year, was to XX% bookings excluding our performance, revenue compared was FX compared the the to acquisitions, the

cash segments and revenue to parts on margin made I'll record these EBITDA adjusted margin diluted $XXX for gain adjusted pressures while Cash of XX.X% increased Improved and aftermarket GAAP experienced historically EPS, generated EBITDA and All free performance of operating our the $X.XX. All of period was $XX included to was adjusted record to XX% to QX, of our EBITDA flow flow of inflationary million is supply a solid and We ongoing a chain of revenue. $XX review was up segments Our which the activity, a $X.XX up results. compared weaker materials quarter building, QX adjusted year our delivered excellent three financial next. million. up XX% business million. to operating delivered sale performance XX% same despite last operating million, led our and EPS issues. segments our which XX% increased in $XX

also in period recent last was QX the third Our acquisition at margin compared while of leverage Flow and XX%. of and favorable and record our XX%. up acquisition, operating a organic quarterly year. EBITDA impact quarter achieved our were strong consecutive million, FX EBITDA is up then record, a first to compared parts adjusted increase $XX then Improved year, a revenue, XX% orders which of increase XXXX to to by the bookings aftermarket Control last revenue of led compared acquisitions from set excludes adjusted and bookings led in up XX% and contribution new This bookings FX same was QX its excluding to million. $XXX segment performance XX%

setting deliver start performance Although, strong flow progresses control to we expect in reasons. several moderate our year the segment, the the year record this as for to expected is year to another

seasonality. is one first The

is the customers of of historically strongest for the of year in terms quarter many as quarter prepare shutdowns. first As maintenance annual our spring bookings, our

Second, the in drivers economic latter the and leads could our to core moderate. That activity markets of year fundamental strong. of Russian-Ukraine part conflict we the the business us headwinds, remain believe strengthening said, end believe

growth. quarter. for capital compared with and increased Turning strong now continue robust to to led million to bookings demand customers the our experience to high wood in activity meet $XX both capital as XX% the maintain and operating the the Good point we packaging Revenue sectors XXX to processing strong market the continue QX demand. a end basis improved experience prior our in Industrial XX% in parts project to Processing that to segment, EBITDA recycled leverage and first in improvement this our demand year, segment adjusted leading margin. operating execution and increased rates

wood customers over Our have to pace the an XX-month customer and processing packaging demand. at past been meet investing accelerated

This particularly the As use Medium are An furniture comes pace for to activity we Density a experiencing. furniture. a as growing expected project Fiberboard, number OSB production. China, interest is where in of furniture in online capacity setting also of in MDF, to capital the been evident level exploring of we've this OSB a year, later more area compared where growing application is more known record are used is as seeing substitute manufacturers balanced the to return

handling nine for So successful, our are up We are year. several far the by once our for additional stranders we activity projects. this encouraged This China systems in segment in more market orders $XX we already In will develop active production operating million proven six has the of bookings machines booked Handling six and rapidly of Material running, for emerging our strong for drillers have equipment and currently XX led year, first China. this have stranding in producers record bulk in once are And operating we and a have China. quarter. OSB segment, and in the demand potential material lines discussions application these

invest bookings XX% XX%. EBITDA progresses. margin their Adjusted our to million up acquisition this first was for Revenue excluding compared up improved revenue were FX, in year acquisition, is revenue, points the our XXX prior as performance high Demand benefited to year and total performance X% While up increased QX basis box quarter. and XX% the and from was spellers $XX continued quarter in increase strong increased revenue organic and operating parts of excellent centers plants to benefit made distribution as facilities. recent the from to relatively expected

the to to XXXX ahead quarter ongoing and maintain look we year, second activity momentum. healthy we project full the and of expect production industrial is its As

on opportunities unfolds. may ability and flows robust has well as us positioned capitalize backlog the record cash to Our to emerge generate year that

in and performance that, deliver We raising detail. XXXX Mike our full discuss call year expect financial year to the this And I'll guidance. more Mike. over turn to record with this again, will

Michael McKenney

Jeff. you, million I'll expenses our XXXX. of the in overall first acquisitions. quarter first in a prior from margin quarter and XX% of in XX.X% to of quarter XXXX, quarter gross million, $X.X was metrics compared revenue, of points margins by key Consolidated represented of compared higher an partially quarter. first first consumables XX with the the of increase the XX% percentage financial XXXX in down the SG&A million to of $XX.X year, start Thank of to first due parts lower revenue for some profile were offset decrease XX.X% gross compared first the our XXXX. in XXXX, quarter $XX.X in which to basis were This

includes currency acquisitions, from XXXX acquisition The related and primarily SG&A of a additional XXXX. non-recurring is translation. increased increased SG&A headcount business non SG&A foreign and $X.X million of million from in and quarter compensation the cash effect improved of costs first increase favorable with $X.X first wages $X.X with quarter related associated in conditions The remaining compared costs, million to to selling associated our expense

expenses As in to a decreased of SG&A year revenue, XX.X% of prior XXXX first in quarter period. to XX.X% percentage the compared the

the XXXX. $X.XX was first quarter, EPS the quarter $X.XX compared diluted to in Our in first

gain the XXXX of $X.XX includes first of Chinese $X.XX relocation our diluted Our acquisition EPS in costs project, related a impairment in sale facilities of one $X.XX a the charge. and on to related quarter

effective the was sale, received facility. the resulting and after product existing Final our with in supports the And agreement our next payment stock in local down we to China on two call, February to million new facility preparation became quarter, a gain share $X.XX reached earnings a or an and build government, outlined move we line. years, $XX.X this per the diluted related our that the As to sale pretax will we tax. first agreement over buy in the facility government from in

the at most earlier payment have sale approximately sells that the will when the estimate We date CapEx XX% and will and years with a of costs the project the costs two the over currently this The from We the government of the within proceeds received due or new proceeds of be incurred. agreement. incurred remaining will $XX for facility facility from property CapEx the being the down the relocation the the effective of of the next selling for to be facility XX-months. pay be million

tax of the and adjusted tax guidance and than to of the quarter first and Our first uncertain revenue due quarter to of tax in the a diluted higher a our positions. end of approximately change the by $X.XX tax included in forecast. awards, in associated exceeded XX.X% related reserves range high EPS was $X.XX $X.XX divesting lower rate XXXX, equity rate with and Tax benefits was

the million asset. SG&A benefit indemnification related to which a $X.X from tax the by reversal of provision the reserve, expense corresponding a of reversal an included offset tax in addition, In is

would items, to quarter all segments. EBITDA been rate first of in our due compared strong million to XX% to $XX.X the have record XX%. these a Excluding $XX.X tax increased in XXXX performance million our Adjusted

percentage million ‘XX. in has flows. of This the been strong first compared million and in to of increased payments Operating the increased Historically, to paid of quarter operating performance. million XX% with in several $X.X had quarter million in of compared cash by operating due $XX.X $XX.X notable paid start the expenditures, quarter the We the of to $XX.X first uses represents adjusted withholding cash in related paid Free debt to material free a $XX.X EBITDA segments. ’XX increased to weak of divesting the cash million stock on million, common improved and both for cash revenue, the first to for quarter first tax dividend our compared first XX.X% in million industrial being million quarter our to $XX.X XXXX flow XXXX. a first quarter our of for quarter down XX.X% a $X.X to As first of XXXX paid capital of cash and non-operating stock flow XXXX, XX% quarter first in highest awards. ‘XX. flow in handling performance quarter processing We $X.X

Let XXXX, GAAP quarter. the EPS the results diluted the $X.XX. and adjusted $X.XX diluted diluted share EPS of GAAP $X.XX back was quarter earnings $X.XX. quarter adding earnings In XXXX, of per costs, In me for after our turn And next was of diluted was first was $X.XX. per EPS adjusted share acquisition first

last lower all I due the to due categories offset recurring $X.XX $X.XX the due These mentioned of the included higher partially $X.XX of $X.XX war first interest average EPS of first of from higher quarter translation $X.XX outstanding. of of due quarter tax higher costs; of diluted interest US currency adjusted margin $X.XX to $X.XX percentage first weighted to increase quarter expense, the lower to chart, just $X.XX the in consists rate. and acquisitions the year, foreign $X.XX Collectively net ‘XX the and were dollar. first compared shares government compared on in due and to in in $X.XX a prior assistance from strengthening by to in shown to XXXX unfavorable due increases period operating the acquisition gross the the and revenue, of ‘XX borrowings, was to programs the expense following. due As of effect to an quarter

a the first number Looking the our first days payable. decreased payable in by on of to in compared of days, XX.X% and ‘XX. revenue a at slide XXXX taking calculate metrics first XX, quarter XXX Working percentage cash end to accounts decrease in our higher XX.X% of by of and quarter inventory days ‘XX, as This receivables ‘XX. which conversion plus end liquidity at in at days we the compared of subtracting quarter days was to of accounts the and the of quarter was the driven capital first XXX

‘XX. that credit net agreement $XX quarter, lower end calculated to at our to at end million the we cash the ‘XX. which of first of revolving debt, accordance the of available quarter of decreased first first December of leverage debt of million, at In compared pattern quarter at capacity matures the quarter of ‘XX with X% is continued Our sequentially and paying million the the we end had the the first credit $XXX X.X to end our debt ‘XX ratio X.XX of the further At of X.XX in of or and ‘XX. down under less our our $XXX able of XXXX, first the quarter facility, in of borrowing we're our to end

updated Now guidance let's our review for XXXX.

$X $XXX $XXX year, As we full to the million the $XXX result excludes to guidance gain the are to start the to from as million charge the acquisition million from adjusted and diluted costs. we EPS diluted strong our $X.XX. increasing associated for are sale in the adjusted the guidance to revenue related million of full China on $X.XX guidance our facility $X.XX year our as a of increasing $X.XX $X.XX $XXX impairment and to $X.XX The year from well to EPS

is ‘XX of for is to the $XXX EPS $XXX Our million second quarter revenue $X.XX to and our guidance guidance million $X.XX.

variability variability timing will flow, results our here capital could to there due and some always, of quarterly order the caution choppiness of several the As factors, shipments. I including be that and in

supply zero US policy. $X.XX strengthening COVID could inflation, of million diluted to impact due currency the of includes that dollar. adjusted The approximately translation guidance dollar, US foreign our risks unfavorable an guidance and of China's on the tensions, other challenges, addition, and XXXX chain strengthening geopolitical $XX on includes impact In EPS revenue

we margins close in result towards more mix, gross a and a increase XX.X%. mix for the anticipate XXXX be As little to the guidance, moving of capital, the will revenue with when now

as In Q&A margins capital on mentioned, margins quarter. of approximately result gross our forecasted revenue a anticipate XX.X% will call, and the in we the quarter be addition, I've as last gross during second

we percentage be will will approximately of R&D XX% a anticipate and revenue, approximately still SG&A expense be X.X% of As XX.X% revenue. to

the and approximately tax And will expect quarters for depreciation in We to amortization to will we rate be remaining approximately ‘XX. our million. expect million $XX XX% continue be $XX

anticipate of continue to in regular be We CapEx to XXXX spending X% approximately revenue.

$XX our the to addition turn the will that concludes XXXX. the I project relocation for we China call That operator will be In estimate to Operator? in amount, my financials Q&A CapEx of approximately related back review now over to the million and session. facility

Operator

And will Barrington with Howe Chris from Instructions] come [Operator Research. first your question

Chris Howe

morning, morning, Mike. Good Jeff. Good

relates qualitative constraints, policy off we're seeing Is As you of to are COVID and in ‘XX. on COVID China you're year it to the Or again zero in kind zero or COVID the from challenges what environment on relates as region? business geopolitical, Can the hearing fiscal latest the the the currency, to for in chain different capital this Policy? describe what it that? flow, foreign potential it quantitative, then you and of outlook for relates lastly, timing your with policy. thoughts leading And there the worsening supply zero that shipments, Whether ground? what's discuss order the as the

Jeff Powell

of get be we've we're the not COVID. may US, of population the here And is we had to our the don't, in XX% rest count XXX employee knowledge, as Yes, employee I I know this employees. is it's large but over now, Chris, because there. a very you very know, don't know, base over probably contracted course, interesting, single a COVID, we have, what

them in if to the as And get as outbreak. to program for So town isolate positive, soon there the region it's isolated. individual they an an test they they that have a strict of bit really have over common pretty adhered

we workers your outbreak in region workers So don't period weeks, is for they for the leave you time, it's suppliers. our we the apartment of a a complex. four that to may are Also delivery suppliers an under have that workers for they you're challenge, if slowing a of be our it's If our, there's in quarantine down or about think need. quarantine of that materials complex, so two

infections, to the I goal they've fairly, say rest effective which relative it's to base, and zero do you but the some have of COVID that, guess at the So it it's is cost, our if within I would employee been within achieved is draconian your world. interruptions well economy. slowing

So it's us. challenge for something that is a

you employees stay so to around a standpoint. But, how don't to so Our have through great an done far alternative working inventory ahead material just and in needs and and job suppliers. you might just of our finding is impact it's know where outbreak going if an trying from forward. uncertain, this, that occur, management And going

our probably policy. it's now So I one right biggest the around is of would the world say uncertainties COVID China

Chris Howe

That's staying And themes. very helpful. along then general

industrial to You relates OS the from from segment, as mentioned the OSB transition MDF, processing it furniture. to in

a put existing, opportunity furniture? stranding being this of for place XX. I about six mentioned into total rightly systems term You nine think long should How

Jeff Powell

things China, go quiet was two case would of get I to got can a it first we've sudden, them and then think, somewhat would orders they got was up -- before then subsequent in COVID I there, I now for and quickly. they that is activity stages when it moving, of seems years, So from there And sold we back be again, lot say then our in things say early when all evaluating systems had we're quite and this, XXXX. the a And started, customer. around in often some the in of hit, started COVID

even the all came weren't year high and these we've they has a So so pipeline, level some orders, far booked on with the sudden, our weren't of been that actually of our activity six radar. systems quite this quickly, them in

be decide things once they these have China where the order base such a to of something, has to because flow one can decides potential significant. they the there, quite once it's massive So be, do manufacturing

we're quite wider, encouraged. a product is we're early a stages, MDF, better steadier. think of do the So I there's that. to We in And but pluses it's OSB it's and think lot

were is it start transitioning market fully a being there that them it large, quite has potential so over lot fairly could for significant we it, a for And continue really the And to convert as construction and of to new if think material embrace over, be potential us. to furniture. a the to they for

Chris Howe

back revenue the hop the I guidance Mike, on before into margin to change question, based was higher gross orders. upside. QX last just capital a you the my pressure, There to queue. the And mentioned

at change to look stated call we the as revenue. the look you previously to the months as of the As it -- Any last commentary year. at we nine the relates last on conference

operating and First, you strongest between the the QX and that first split as in as Is second mentioned even in quarters still combination, QX well consistent? half, being leverage the second with better half half.

Michael McKenney

say Chris. has update second on up. Yes, firmed would now really is question, that that the the half of Good I the year

we when split. was and guidance evenly the it in whereas relatively So February, gave

second year improved. as the the And stronger. the margins leverage operating also is the result operating have of a Now better of half

the So going of to half front stronger year. force than be half is year the the back

Operator

will with come Your from Chevy Eubank Chase Trust. question next Bobby

Bobby Eubank

a ability execution environment. Look, through to you're appreciate this the seeing type pricing, on the And you've challenged solid what guys. and about your past Congrats continue commentary. XX:XX guys. material increases? your walk talked of you inflationary in raw kind through a very in morning, inputs Good to can in pass your extreme Thanks, conservatism of

Jeff Powell

thanks, Bobby. Yes,

we've what think certainly So I on the fairly materials. by to your the unusual or period, for an customer pricing kind know increases of and at in experienced, a of some result as profitability that by is and that. cost where we're you product raw XX:XX significant last XX now our right we're seeing action years as what you take you're alluding looks program But XX

primarily have from try customer, always value to that manufacture somebody we that our our to And I've that's pass materials, and we have your As out being part had manufacturing we very everything increases we're cases said that others. cost more and over to many to might work have, because you to we've experienced minimize basic just to pass the our don't a if a assembles cost we're manufacturing, proposition. we them, those sub-assemblies selling hard certainly little lot buy, that you're in we raw of of on we said, That not control to before, customers. than on buys have

of course, the are Our experiencing board. that across customers,

so passing And it's not on cost a increases big surprise, their are they too their customers. to

hard are the gone we there to other the alternative costs that where that. certainly to no minimize just we're instances right considerably, pass they board we we're now, understand other the what I and them. where to in across general than kind of dealing those impact I supply said, this of increasing chain. with, But really pressures have the work as have think inflationary on So try costs they environment are pricing understand throughout up And to

Bobby Eubank

and maybe Makes high aggregate of the side the commentary that you expectations US, the very a handling mining half second more for XXXX? course, the the but lot here some around in We give recycling components has and of sense. in year the there. outlook and level segment bill have of been infrastructure Could of into the strong, maybe maybe material on

Jeff Powell

Yes.

team bill side. I quarter the general And a sense has side and is, our a that. been particular think we strong of operating from spent mining So the infrastructure sentiment on had there optimism, business of that there not on prepared there's new people aggregate that as is a money very getting But first for the yet. of are that the is lot

meet in that their the to starting make so they're does occur. operations, when so they And demand can investments

I few think of optimism some the a level so demand kind there's over a we're increases of, years. in going as to said, next I And see that

has raw investments of Russia-Ukraine the is, we're And to to and to materials course, the ramp from make sanctions chain. those, with lot start customers that have seeing conflict, thing production come other The with of replace happened that on lost supply up region. a

has their that are to of So up major of market away, things the Ukraine production ramp certain Russia materials like there's goes potash, that raw when exporters try to loss. the rest that replace and to

And that see customers in we're and we're to that really are some conflict. our are make to projects so starting with starting put investments, discussions of customers the that on result

market some production. increase will So in some to and production of that's shifting force kind a disruption that

Bobby Eubank

lot and makes final things I any kind kind question, that. Yes, remains be of up term sense. healthy, maybe But acquisition should near And one that pipeline my a follow of we have the expecting? of to

Jeff Powell

always, strategic team development busy find and companies we're to our corporate many that good is know, very always, you as a looking, we're couple are Well, many to a as always XXX fit talking for as tracking ones as sometimes trying us.

be they're we an for hurdles. and improvements fairly through us. in it price the of to has to value make we the think two can we acquisition fairly high the we have We be fit And able strategic combination that second business, is high hurdles, one, has it to pay, be with good create might a the

we're smaller number. is That quickly in good of being And sheet there's that so fairly couple a gets to out opportunities a XXX shape, much of balance our said, a generating cash. free down a there. healthy funneled pipeline And companies lot

During the slow year pandemic, of were half or course, so. a for quite and a things

just that to for fairly level. were that of there recover. waiting there sitting high some market So operating And was a the at companies are then to course, deals came things

of the their to business. performance sell take And advantage some to want good people

of hard us out It's effort. activity We something we're a that's The there. kind healthy always for And a price. that it. never good on challenge a really fit find there's So slow level is reasonable working at continuous down effort. a

Bobby Eubank

supply sense. evaluating of trend lot and factories like of you world. And or so Is a of that? your on challenges or anything operating customers all kind between there around much. chains Makes the shoring you Thanks mentioned near the any last,

Jeff Powell

you this, everybody's get when Well, into environments supplies the in like everywhere world. searching for

get you things. you're to going quite flexible where So and get

some running In lot, right consumables there's can our being So a it would all, say used up. lot they're customers a cases can parts because principal is consuming rates? of concern the lot have I operating high deliveries? there's meet are they're now a that very So you deliver you and

first to when want parts needed. supply know give level them In assurance. so can a some running inventory some they're thing have know to to that them. shelf the cases, we'll So In on available they to make they the is levels, higher just they higher more continue run consumables and we cases, inventory sure

us customers, of our lot So discussion, yes, a this. environment like say I'd when on there's lot you're going in and a between an of activity

Operator

Your next Walter Liptak question come will Seaport. with from

Walter Liptak

Hey, morning, quarter. Great guys. good

try I'm of couple great seems price when it. pricing me with Let like you follow are the a inflation, guys doing ups costs, a job

to you're companies. Yes, So seen of making could wonder periodic related I some I projects. Because price are doing we, if it increases, how because from insight we've the could landscape, doing you you your other what about, industrial see I if than some we into give think or all how things, annual increases? us look kinds in you're ask wonder easier I price surcharges, it

Michael McKenney

things exactly Wal. Well, are Thanks what mentioned we're we're, you those some doing. of

are us, and contractually quotes to think, those their consumables connected just putting Putting in making will including to closely, time, quickly. and that amount adhere, trying surcharges, are for in input our adjustments noted. monitor things very that the I turned folks place and parts you very accordingly, place, costs. Our available where of limit quite are They

of protect an have order, the that we though don't we for we long. the will that's the components, pricing have isn't the all we when And for adjust to to on we exposure in been probably capital able backlog months, But that try and to we and can is nine that quickly the amount backlog we in can area limited you, take they in some in open lock order, get our to where very do six exposure ourselves, is quote order time is there. even most we've So the and material. the area sit to if secure haven't the for

it's are environment. working quite -- dynamic we but folks And a So our levers. the there all are

continuously. closely, So they are monitoring it

Jeff Powell

quite even that Asia, also might our supply and where add might South chain versus and world, really Europe, inflationary the as helps issues structure is I issues America. Wal, imagine, around us. this Because you North decentralized And different Yes. America are

our on experiencing local every based we've focusing the with conditions structure, on this got So of they're all ground. on day, divisions the decentralized our

a got, little every you've of that around a kind day, people for you've it on a gotten are focusing so And us. this more makes of manageable of force multiplier, like it's large the world number kind that

Walter Liptak

give us would ballpark And those in of one what value OSB then OSB Thanks great. be? one can the -- that. Okay, the just like projects a you on for mine of the out China, last

Jeff Powell

$X depending and between tend little the order to options are less, tends the up per fall $X stuff million a They as obviously, often kind a strands our buy depends they everything million for two be you it. but it of buy to might But normally be imagine, they orders single, on case with can a them, OSB with picking sometimes on time. at

Operator

over And I'm now back will Jeff showing closing time. at I further hand no for remarks. this Powell it to questions

Jeff Powell

Thanks Peter.

up few with wrapping takeaways. just a call, to leave I Before wanted you the

on revenue. excellent to although bookings capital which first and was an XXXX with drive to processing our stakeholders. innovative to start activity with that sustainable high robust there the economic our long-term our And The social and solutions increasing political and are and industrial headwinds led technologies demand record quarter and parts employees globe value around our for deliver project customers’ present, continue focus to meeting needs

cash our strong to stay for again today and model. value ability in for excellent please of the stakeholders forward is call delivering free exceptional flow and to joining our want you health look safe. We XXXX. business our cornerstone all to financial thank generate a We Our remains

Operator

today's Thank conference participating. call. you concludes for This

You may now disconnect.

Kadant (KAI) 4 May 222022 Q1 Earnings call transcript