BLOOMFIELD, Conn. – Kaman Corp. today reported financial results for the fourth fiscal quarter and full year ended December 31, 2022.
“Both the quarter and full-year results came in ahead of our expectations that we communicated last quarter. For the twelve-month period, net sales at Engineered Products segment grew by 6.5% due to the acquisition of Aircraft Wheel and Brake and by 12.2% in the base business. For the full year, operating income grew by 40% organically in our Engineered Products segment, highlighting the recovery in the commercial aerospace market and continued growth in medical and industrial end markets,” said Ian K. Walsh, Chairman, President and Chief Executive Officer.
“During 2022, Kaman entered the next phase on its journey to positioning the company for long-term growth. As announced in December, Kaman is consolidating its Joint Programmable Fuze production and optimizing cost structure to align with our highest return opportunities. In January, we announced further initiatives to streamline Kaman’s facilities and functions by reducing headcount, eliminating non-value added activities, discontinuing K-MAX® production and right-sizing Kaman’s total cost structure.”
“At the forefront of our transformation is the execution on our long-term growth strategy for our Engineered Products segment. During the fourth quarter we continued to integrate the Aircraft Wheel and Brake acquisition and we’re seeing results in line with our expectations for this business which reaffirms that this investment was a key part of supporting the overall strategy for the Engineered Products segment. Organically, the order intake across these businesses during the fourth quarter grew substantially compared to levels in the previous year. The actions that we have taken and the strength in our underlying performance will enhance our earnings power and position us to deliver improved sales, adjusted EBITDA and free cash flow in 2023,” said Walsh.
OUTLOOK DISCUSSION
Revenue and earnings growth is driven by the addition of Aircraft Wheel and Brake to the portfolio. Organically, Adjusted EBITDA is expected to improve due to margin expansion from the Engineered Products segment driven by strategic price increases and lean initiatives the Company is taking. Higher interest expense will remain a headwind on cash expectations for the year and, while the Company will be vigilant on cash outlay, it has committed to key capital projects and research and development spend associated with new autonomous technologies. The expected decline in the adjusted diluted earnings per share is primarily a result of significantly lower pension income, attributing to $0.50 cents per share of the total decline, higher interest expense and lower JPF DCS orders. For further information, the Company’s supplemental presentation relating to the fourth quarter 2022 results and 2023 outlook will be posted to the Company’s website.
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Table 1. Summary of Financial Results (unaudited) |
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|
Thousands of U.S. dollars (except share data) |
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||||
|
|
|
December 31, 2022 |
|
September 30, 2022 |
|
December 31, 2021 |
|
December 31, 2022 |
|
December 31, 2021 |
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|
Net sales |
|
$ |
197,143 |
|
|
$ |
172,004 |
|
|
$ |
175,147 |
|
|
$ |
687,961 |
|
|
$ |
708,993 |
|
|
Net (loss) earnings |
|
|
(54,943 |
) |
|
|
625 |
|
|
|
9,169 |
|
|
|
(46,226 |
) |
|
|
43,676 |
|
|
Adjusted EBITDA* |
|
|
30,987 |
|
|
|
20,614 |
|
|
|
23,591 |
|
|
|
80,216 |
|
|
|
95,464 |
|
|
Adjusted EBITDA margin* |
|
|
15.7 |
% |
|
|
12.0 |
% |
|
|
13.5 |
% |
|
|
11.7 |
% |
|
|
13.5 |
% |
|
Diluted (loss) earnings per share |
|
$ |
(1.96 |
) |
|
$ |
0.02 |
|
|
$ |
0.33 |
|
|
$ |
(1.65 |
) |
|
$ |
1.57 |
|
|
Adjusted diluted earnings per share* |
|
$ |
0.42 |
|
|
$ |
0.32 |
|
|
$ |
0.48 |
|
|
$ |
1.12 |
|
|
$ |
1.93 |
|