Kaydon Corporation Reports Second Quarter 2013 Results

  Kaydon Corporation Reports Second Quarter 2013 Results

Business Wire

ANN ARBOR, Mich. -- July 25, 2013

Kaydon Corporation (NYSE:KDN) today announced its results for the second
fiscal quarter ended June 29, 2013.

Consolidated Results

Sales in the second quarter of 2013 were $117.3 million, compared to sales of
$124.4 million in the second quarter of 2012.

Diluted earnings per share on a GAAP basis in the second quarter of each of
2013 and 2012 equaled $0.36. Adjusted earnings per share, as defined below,
was $0.42 in both the second quarter of 2013 and the second quarter of 2012.

Adjusted EBITDA, as defined below, was $25.6 million during the second quarter
of 2013, compared to $27.3 million, during the second quarter of 2012. Free
cash flow, as defined below, for the second quarter of 2013 was $18.7 million
compared to $13.3 million in the second quarter of 2012.

Adjusted gross margin was 38.6 percent in the second quarter of 2013, compared
to 33.7 percent in the second quarter of 2012, as the Company continues to
benefit from the increased operating leverage that has resulted from the
restructuring activities undertaken in late 2012 and from ongoing operational
improvements.

This press release includes certain non-GAAP measures, including adjusted
gross margin, adjusted earnings per share, EBITDA, adjusted EBITDA and free
cash flow. Readers should refer to the attached Reconciliation of Non-GAAP
Measures exhibit for the reconciliations of the applicable GAAP measures to
the non-GAAP measures presented.

Adjustments to GAAP results include certain items management considers in
evaluating operating performance in each period. During the second quarter of
2013, Kaydon incurred $1.2 million of costs associated with due diligence and
restructuring activities, and $1.2 million of non-cash amortization of
previously incurred net actuarial losses related to postretirement benefit
plans. During the current quarter the Company reviewed, and continues to
review, several potential acquisitions. During the second quarter of 2012,
adjustments included $1.6 million of acquisition-related costs primarily
related to the Fabreeka acquisition and $1.1 million of non-cash amortization
of previously incurred net actuarial losses related to postretirement benefit
plans.

Orders and Backlog

Orders were $123.2 million in the second quarter of 2013, compared to $112.8
million in the second quarter of 2012 and $119.4 million in the first quarter
of 2013. Backlog at June 29, 2013 was $158.1 million, compared to $169.5
million at June 30, 2012.

Financial Position and Free Cash Flow

Free cash flow was $18.7 million in the second quarter of 2013, compared to
$13.3 million in the second quarter of 2012. During the quarter, the Company
repaid $7.8 million of debt while paying dividends of $6.4 million.

As of June 29, 2013, the Company had cash and cash equivalents totaling $69.9
million and total borrowings outstanding of $164.7 million, resulting in net
debt of $94.8 million.

Management Commentary

James O’Leary, Chairman and Chief Executive Officer commented, “The second
quarter of 2013 was solid as we continue to successfully manage the variables
within our control. Relative to the comparable quarter of 2012, we saw
improved margins, free cash flow and orders despite a still challenging
economic environment. In aggregate, bookings for our industrial businesses
were solid with trends consistent with this year’s first quarter. As expected,
military bookings were lower due to anticipated reductions in military
activity and timing. However, this was more than offset by strong wind energy
bookings in the quarter, supporting our view that the wind energy business has
bottomed and will continue to show signs of improvement as we look a few
quarters forward.

“Like most in the industrial space, we anticipate gradual improvement in the
latter half of the year. While we wait for clearer signs of this pickup in
economic activity, our principal focus remains managing the things within our
control while we explore growth opportunities on the acquisition front. Our
operational focus will translate in continued strength in both free cash flow
and margins, as demonstrated so far this year, and further improvement when
economic growth picks up in a more pronounced and sustained fashion.”

About Kaydon

Kaydon Corporation is a leading designer and manufacturer of custom
engineered, performance-critical products, supplying a broad and diverse group
of industrial, military, aerospace, medical, semiconductor and alternative
energy equipment, and aftermarket customers.

Conference call information: At 11:00 a.m. Eastern time today, Kaydon will
host a second quarter 2013 earnings conference call. The conference call can
be accessed telephonically in a listen-only mode by dialing 1-888-471-3843 and
providing the following passcode number: 800500. Participants are asked to
dial in 10 minutes prior to the scheduled start time of the call.

Alternatively, interested parties are invited to listen to the conference call
on the internet at:

http://w.on24.com/r.htm?e=654132&s=1&k=047D773357A6F973268DACF57BCDC690

or by logging on to the Kaydon Corporation website at: http://www.kaydon.com
and accessing the conference call at the “Second Quarter 2013 Conference Call”
icon.

To accommodate those that are unable to listen at the scheduled start time, a
replay of the conference call will be available telephonically beginning at
2:00 p.m. Eastern time today through Wednesday, July 31, 2013 at 2:00 p.m.
Eastern time. The replay is accessible by dialing 1-888-203-1112 and providing
the following passcode number: 3897290.

Additionally, interested parties can access an archive of the conference call
on the Kaydon Corporation website at http://www.kaydon.com.

This press release contains forward-looking statements within the meaning of
the Securities Exchange Act of 1934 regarding the Company’s plans,
expectations, estimates and beliefs. Forward-looking statements are typically
identified by words such as “believes,” “anticipates,” “estimates,” “expects,”
“intends,” “will,” “may,” “should,” “could,” “potential,” “projects,”
“approximately,” and other similar expressions, including statements regarding
general economic conditions, competitive dynamics and the adequacy of capital
resources. These forward-looking statements may include, among other things,
projections of the Company’s financial performance, anticipated growth,
characterization of and the Company’s ability to control contingent
liabilities, and anticipated trends in the Company’s businesses. These
statements are only predictions, based on the Company’s current expectations
about future events. Although the Company believes the expectations reflected
in the forward-looking statements are reasonable, it cannot guarantee future
results, performance or achievements or that predictions or current
expectations will be accurate. These forward-looking statements involve risks
and uncertainties that could cause the Company’s actual results, performance
or achievements to differ materially from those expressed or implied by the
forward-looking statements.

In addition, the Company or persons acting on its behalf may from time to time
publish or communicate other items that could also be construed to be
forward-looking statements. Statements of this sort are or will be based on
the Company’s estimates, assumptions, and projections and are subject to risks
and uncertainties that could cause actual results to differ materially from
those included in the forward-looking statements. Kaydon does not undertake
any responsibility to update its forward-looking statements or risk factors to
reflect future events or circumstances except to the extent required by
applicable law.

Certain non-GAAP measures are presented in this press release. These measures
should be viewed as supplemental data, rather than as substitutes or
alternatives to the most comparable GAAP measures.



KAYDON CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
                                                            
                                                                   
                       Three Months Ended            Six Months Ended
                                                                   
                       June 29,      June 30,        June 29,      June 30,
                       2013          2012            2013          2012
Net sales              $ 117,343     $ 124,373       $ 228,016     $ 240,839
                                                                   
Cost of sales           73,751      83,371        143,053     158,238 
                                                                   
Gross profit             43,592        41,002          84,963        82,601
                                                                   
Selling, general
and administrative      26,379      23,532        52,012      47,796  
expenses
                                                                   
Operating income         17,213        17,470          32,951        34,805
                                                                   
Interest expense         (896    )     (795    )       (1,792  )     (1,183  )
                                                                   
Interest income         74          54            140         179     
                                                                   
Income before            16,391        16,729          31,299        33,801
taxes
                                                                   
Provision for           4,704       5,035         8,938       9,986   
income taxes
                                                                   
Net income             $ 11,687     $ 11,694       $ 22,361     $ 23,815  
                                                                   
                                                                   
                                                                   
Earnings per
share:
Basic                  $ 0.36       $ 0.37         $ 0.70       $ 0.74    
Diluted                $ 0.36       $ 0.36         $ 0.70       $ 0.74    
                                                                   
                                                                   
Dividends declared     $ 0.20       $ 0.20         $ 0.40       $ 10.90   
per share
                                                                   
                                                                   
Weighted average
common shares
outstanding:
Basic                   31,818      31,755        31,815      31,744  
Diluted                 31,847      31,776        31,843      31,769  
                                                                             


KAYDON CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
                                                          
                                                                  
                                                  June 29,        December 31,
                                                  2013            2012
  Assets:
  Cash and cash equivalents                       $ 69,937        $   53,556
  Accounts receivable, net                          74,580            71,410
  Inventories, net                                  97,345            97,933
  Other current assets                             17,189           20,354
                                                                  
  Total current assets                              259,051           243,253
                                                                  
  Property, plant and equipment, net                115,595           121,233
                                                                  
  Assets held for sale                              7,850             6,530
  Goodwill, net                                     189,196           190,323
  Other intangible assets, net                      47,201            49,177
  Other assets                                     4,558            4,646
                                                                  
  Total assets                                    $ 623,451       $   615,162
                                                                  
                                                                  
  Liabilities and Shareholders' Equity:
                                                                  
  Accounts payable                                $ 23,713        $   15,555
  Accrued expenses                                  24,569            21,539
  Current portion long-term debt                   8,438            10,313
  Total current liabilities                         56,720            47,407
                                                                  
  Long-term debt                                    156,250           166,062
  Other long-term liabilities                      71,738           70,917
  Total long-term liabilities                       227,988           236,979
                                                                  
  Shareholders' equity                             338,743          330,776
                                                                  
  Total liabilities and shareholders'             $ 623,451       $   615,162
  equity
                                                                      


KAYDON CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
                                                          
                      Three Months Ended            Six Months Ended
                                                                  
                      June 29,      June 30,        June 29,      June 30,
                      2013          2012            2013          2012
Cash Flows from
Operating
Activities:
  Net income          $ 11,687      $ 11,694        $ 22,361      $ 23,815
  Adjustments to
  reconcile net
  income to
  net cash from
  operating
  activities:
  Depreciation          3,886         5,165           7,736         10,175
  Amortization of
  intangible            966           839             1,924         1,578
  assets
  Amortization of       963           904             1,607         1,795
  stock awards
  Stock option
  compensation          219           219             379           1,335
  expense
  Excess tax
  benefits from         -             29              156           (673     )
  stock-based
  compensation
  Deferred              123           124             246           470
  financing fees
  Contributions
  to qualified          (386    )     (1,535  )       (566    )     (2,169   )
  pension plans
  Net change in
  receivables,          1,507         1,896           4,692         (16,320  )
  inventories and
  trade payables
  Net change in
  other assets         2,049       (1,346  )      8,781       3,940    
  and liabilities
                                                                  
  Net cash from
  operating             21,014        17,989          47,316        23,946
  activities
                                                                  
Cash Flows from
Investing
Activities:
  Capital               (3,011  )     (4,815  )       (5,023  )     (8,122   )
  expenditures
  Dispositions of
  property, plant       659           168             711           1,961
  and equipment
  Acquisition of
  business, net        -           (51,567 )      -           (51,567  )
  of cash
  acquired
                                                                  
  Net cash used
  in investing          (2,352  )     (56,214 )       (4,312  )     (57,728  )
  activities
                                                                  
Cash Flows from
Financing
Activities:
  Proceeds from
  long-term             -             50,000          -             200,000
  borrowings
  Repayments of
  long-term             (7,812  )     (1,874  )       (11,687 )     (1,874   )
  borrowings
  Debt issuance         -             -               -             (1,357   )
  costs
  Cash dividends        (6,423  )     (6,402  )       (12,843 )     (348,892 )
  paid
  Purchase of           -             -               (678    )     (1,199   )
  treasury stock
  Excess tax
  benefits from         -             (29     )       (156    )     673
  stock-based
  compensation
  Proceeds from
  exercise of          -          97            -          112      
  stock options
                                                                  
  Net cash from
  (used in)             (14,235 )     41,792          (25,364 )     (152,537 )
  financing
  activities
                                                                  
                                                                  
Effect of
exchange rate
changes on cash
and
cash equivalents       (65     )    (1,119  )      (1,259  )    (156     )
                                                                  
Net increase
(decrease) in           4,362         2,448           16,381        (186,475 )
cash and cash
equivalents
                                                                  
Cash and cash
equivalents -          65,575      36,291        53,556      225,214  
Beginning of
period
                                                                  
Cash and cash
equivalents - End     $ 69,937     $ 38,739       $ 69,937     $ 38,739   
of period
                                                                             


KAYDON CORPORATION
REPORTABLE SEGMENT INFORMATION
(In thousands)
                                                            
                    Three Months Ended               Six Months Ended
                                                                   
                    June 29,         June 30,        June 29,      June 30,
Net sales           2013             2012            2013          2012
                                                                   
Friction
Control             $  57,074        $ 71,525        $ 108,748     $ 137,328
Products
Velocity
Control                30,796          24,488          63,383        48,787
Products
Other
Industrial            29,473        28,360        55,885      54,724  
Products
                                                                   
Total
consolidated        $  117,343      $ 124,373      $ 228,016    $ 240,839 
net sales
                                                                   
                                                                   
                    Three Months Ended               Six Months Ended
                                                                   
                    June 29,         June 30,        June 29,      June 30,
Operating           2013             2012            2013          2012
income
                                                                   
Friction
Control             $  9,278         $ 10,174        $ 16,571      $ 21,993
Products
Velocity
Control                5,844           5,708           13,352        11,550
Products
Other
Industrial            3,430         3,020         5,502       4,929   
Products
Total segment
operating              18,552          18,902          35,425        38,472
income
Items not
allocated to
segment                (1,339   )      (1,432  )       (2,474  )     (3,667  )
operating
income
Interest               (896     )      (795    )       (1,792  )     (1,183  )
expense
Interest              74            54            140         179     
income
                                                                   
Income before       $  16,391       $ 16,729       $ 31,299     $ 33,801  
taxes
                                                                   
The Company has two reporting segments: Friction Control Products and Velocity
Control Products. The Company’s remaining operating segments are combined and
disclosed as "Other Industrial Products."



Kaydon Corporation
Reconciliation of Non-GAAP Measures
(In thousands)
                                                                             
                                                                                     
                   Three Months Ended        Six Months Ended          LTM
                                                                                     
                   June 29,     June 30,     June 29,     June 30,     June 29,      June 30,
     Free cash
     flow, as      2013         2012         2013         2012         2013          2012
     defined
     (non-GAAP)
Net cash from
operating          $ 21,014     $ 17,989     $ 47,316     $ 23,946     $ 110,252     $ 58,019
activities
(GAAP)
Capital
expenditures,       (2,352 )    (4,647 )    (4,312 )    (6,161 )    (13,407 )    (13,215 )
net of
dispositions
Free cash flow,
as defined         $ 18,662    $ 13,342    $ 43,004    $ 17,785    $ 96,845     $ 44,804  
(non-GAAP)
                                                                                     
Kaydon's management believes free cash flow, as defined above and a non-GAAP measure, is an
important indicator of the Company's ability to generate excess cash above levels required for
capital investment to support future growth. However, it should be viewed as supplemental data,
rather than as a substitute or alternative to the comparable GAAP measure.
                                                                                     
                   Three Months Ended        Six Months Ended          LTM
                                                                                     
                   June 29,     June 30,     June 29,     June 30,     June 29,      June 30,
                   2013         2012         2013         2012         2013          2012
     Adjusted
     EBITDA, as
     defined
     (non-GAAP)
Net income         $ 11,687     $ 11,694     $ 22,361     $ 23,815     $ (904    )   $ 46,999
(GAAP)
Net interest         822          741          1,652        1,004        3,456         995
(income)/expense
Provision for        4,704        5,035        8,938        9,986        10,706        19,101
income taxes
Depreciation and
amortization of      4,852        6,004        9,660        11,753       20,653        23,623
intangible
assets
Stock-based
compensation        1,182      1,123      1,986      3,130      3,672       5,945   
expense (1)
EBITDA, as
defined              23,247       24,597       44,597       49,688       37,583        96,663
(non-GAAP)
                                                                                     
Arbitration          -            -            -            143          3,989         5,825
costs
Impairment and
restructuring        852          55           1,403        218          47,773        1,255
related costs
(2)
Due diligence
and purchase         328          1,551        358          1,551        847           1,922
accounting costs
Recapitalization     -            -            -            267          266           267
costs
Curtailment          -            -            -            -            -             (133    )
gains
Amortization of
net actuarial        1,172        1,127        2,344        2,253        4,869         3,658
loss
Pension             -         -          -          -          2,914       -       
Settlement
Adjusted EBITDA,
as defined         $ 25,599   $ 27,330    $ 48,702    $ 54,120    $ 98,241     $ 109,457 
(non-GAAP)
                                                                                     
     (1) Includes non-cash stock amortization expense and non-cash stock option
     expense.
     (2) Includes wind restructuring related impairments and other costs including fixed asset
     impairments of $43.0 million, inventory impairment of $1.1 million, accounts receivable
     reserves of $1.3 million, severance costs of $0.5 million and other program costs of $1.8
     million for the twelve months ended June 29, 2013.
                                                                                     
Kaydon's management believes EBITDA, as defined above and Adjusted EBITDA, as defined, both
non-GAAP measures, are determinants of the Company's capacity to incur additional senior capital
to enhance future profit growth and cash flow growth. In addition, EBITDA is widely used by
financial analysts and investors, and is utilized in measuring compliance with financial
covenants in the Company's credit agreement. Also, EBITDA is a metric used to determine payments
under the Company's annual incentive compensation program for senior managers. However, EBITDA,
as defined, and Adjusted EBITDA, as defined should be viewed as supplemental data, rather than
as substitutes or alternatives to the comparable GAAP measure.


Kaydon Corporation
Reconciliation of Non-GAAP Measures (continued)
(In thousands, except per share data)
                                                                                                                             
            Three months ended June 29, 2013
                                                                                                                                       
                          Non-operating items, as defined by the Company
                          Wind                                           Due
                                                                         Diligence/
                          restructuring                 Restructuring/   Purchase                        Settlement /   Amortization
                          and             Arbitration   Severance        Accounting   Recapitalization   Curtailment    of Actuarial   Adjusted
                          impairment
            GAAP          charge          Costs         Costs            Costs        Costs              Gains/Losses   Loss           (Non-GAAP)
Net Sales   $ 117,343     $   -           $   -         $   -            $  -         $    -             $   -          $  -           $ 117,343
                                                                                                                                       
Gross         43,592          939             -             -               -              -                 -             759           45,290
profit
                                                                                                                                       
Gross         37.1    %       0.8    %        0.0  %        0.0    %        0.0   %        0.0    %          0.0   %       0.6    %      38.6    %
margin
                                                                                                                                       
S, G & A     26,379        (87    )       -           -             328          -               -           413         25,725  
expenses
                                                                                                                                       
Operating     17,213          852             -             -               328            -                 -             1,172         19,565
income
                                                                                                                                       
Interest,    (822    )      -             -           -             -            -               -           -           (822    )
net
                                                                                                                                       
Income
before        16,391          852             -             -               328            -                 -             1,172         18,743
taxes
                                                                                                                                       
Tax
provision    4,704         245           -           -             94           -               -           336         5,379   
*
                                                                                                                                       
Net          11,687     $   607        $   -        $   -           $  234      $    -            $   -         $  836        $ 13,364  
income
                                                                                                                                       
Diluted     $ 0.36        $   0.02        $   -         $   -            $  0.01      $    -             $   -          $  0.03        $ 0.42
EPS
                                                                                                                                       
            Three months ended June 30, 2012
                                                                                                                                       
                          Non-operating items, as defined by the Company
                          Wind                                           Due
                                                                         Diligence/
                          restructuring                 Restructuring/   Purchase                        Settlement /   Amortization
                          and             Arbitration   Severance        Accounting   Recapitalization   Curtailment    of Actuarial   Adjusted
                          impairment
            GAAP          charge          Costs         Costs            Costs        Costs              Gains/Losses   Loss           (Non-GAAP)
Net Sales   $ 124,373     $   -           $   -         $   -            $  -         $    -             $   -          $  -           $ 124,373
                                                                                                                                       
Gross         41,002          -               -             -               118            -                 -             832           41,952
profit
                                                                                                                                       
Gross         33.0    %       0.0    %        0.0  %        0.0    %        0.1   %        0.0    %          0.0   %       0.7    %      33.7    %
margin
                                                                                                                                       
S, G & A     23,532        -             -           55            1,433        -               -           295         21,749  
                                                                                                                                       
Operating     17,470          -               -             55              1,551          -                 -             1,127         20,203
income
                                                                                                                                       
Interest,    (741    )      -             -           -             -            -               -           -           (741    )
net
                                                                                                                                       
Income
before        16,729          -               -             55              1,551          -                 -             1,127         19,462
taxes
                                                                                                                                       
Tax
provision    5,035         -             -           17            467          -               -           339         5,858   
*
                                                                                                                                       
Net         $ 11,694     $   -          $   -        $   38          $  1,084    $    -            $   -         $  788        $ 13,604  
income
                                                                                                                                       
Diluted     $ 0.36        $   -           $   -         $   0.00         $  0.03      $    -             $   -          $  0.02        $ 0.42
EPS
                                                                                                                                       
Kaydon's management believes that certain non-GAAP measures of Adjusted operating income, Adjusted interest, net, Adjusted net income, and
Adjusted earnings per share - diluted, provide investors with additional information to assess the Company's financial performance. However, these
measures should be viewed as supplemental data, rather than substitutes or alternatives to the comparable GAAP measures.
                                                                                                                                       
* Taxed at effective tax rate for each quarter.



Kaydon Corporation
Reconciliation of Non-GAAP Measures (continued)
(In thousands, except per share data)
                                                                                                                             
            Six months ended June 29, 2013
                                                                                                                                       
                          Non-operating items, as defined by the Company
                          Wind                                           Due
                                                                         Diligence/
                          restructuring                 Restructuring/   Purchase                        Settlement /   Amortization
                          and             Arbitration   Severance        Accounting   Recapitalization   Curtailment    of Actuarial   Adjusted
                          impairment
            GAAP          charge          Costs         Costs            Costs        Costs              Gains/Losses   Loss           (Non-GAAP)
Net Sales   $ 228,016     $   -           $  -          $   -            $  -         $    -             $   -          $  -           $ 228,016
                                                                                                                                       
Gross         84,963          1,513          -              -               -              -                 -             1,518         87,994
profit
                                                                                                                                       
Gross         37.3    %       0.7    %       0.0   %        0.0    %        0.0   %        0.0     %         0.0   %       0.7    %      38.6    %
margin
                                                                                                                                       
S, G & A     52,012        (110   )      -            -             358          -               -           826         50,938  
expenses
                                                                                                                                       
Operating     32,951          1,403          -              -               358            -                 -             2,344         37,056
income
                                                                                                                                       
Interest,    (1,652  )      -            -            -             -            -               -           -           (1,652  )
net
                                                                                                                                       
Income
before        31,299          1,403          -              -               358            -                 -             2,344         35,404
taxes
                                                                                                                                       
Tax
provision    8,938         401          -            -             102          -               -           669         10,110  
*
                                                                                                                                       
Net          22,361     $   1,002      $  -         $   -           $  256      $    -            $   -         $  1,675      $ 25,294  
income
                                                                                                                                       
Diluted     $ 0.70        $   0.03        $  -          $   -            $  0.01      $    -             $   -          $  0.05        $ 0.79
EPS
                                                                                                                                       
            Six months ended June 30, 2012
                                                                                                                                       
                          Non-operating items, as defined by the Company
                          Wind                                           Due
                                                                         Diligence/
                          restructuring                 Restructuring/   Purchase                        Settlement /   Amortization
                          and             Arbitration   Severance        Accounting   Recapitalization   Curtailment    of Actuarial   Adjusted
                          impairment
            GAAP          charge          Costs         Costs            Costs        Costs              Gains/Losses   Loss           (Non-GAAP)
                                                      
Net Sales   $ 240,839     $   -           $  -          $   -            $  -         $    -             $   -          $  -           $ 240,839
                                                                                                                                       
Gross         82,601          -              -              -               118            -                 -             1,663         84,382
profit
                                                                                                                                       
Gross         34.3    %       0.0    %       0.0   %        0.0    %        0.0   %        0.0     %         0.0   %       0.7    %      35.0    %
margin
                                                                                                                                       
S, G & A     47,796        -            143          218           1,433        1,058           -           590         44,354  
                                                                                                                                       
Operating     34,805          -              143            218             1,551          1,058             -             2,253         40,028
income
                                                                                                                                       
Interest,    (1,004  )      -            -            -             -            247             -           -           (757    )
net
                                                                                                                                       
Income
before        33,801          -              143            218             1,551          1,305             -             2,253         39,271
taxes
                                                                                                                                       
Tax
provision    9,986         -            41           64            467          378             -           666         11,602  
*
                                                                                                                                       
Net         $ 23,815     $   -          $  102       $   154         $  1,084    $    927          $   -         $  1,587      $ 27,669  
income
                                                                                                                                       
Diluted     $ 0.74        $   -           $  0.00       $   0.00         $  0.03      $    0.03          $   -          $  0.05        $ 0.86
EPS
                                                                                                                                       
Kaydon's management believes that certain non-GAAP measures of Adjusted operating income, Adjusted interest, net, Adjusted net income, and
Adjusted earnings per share - diluted, provide investors with additional information to assess the Company's financial performance. However, these
measures should be viewed as supplemental data, rather than substitutes or alternatives to the comparable GAAP measures.
                                                                                                                                       
* Taxed at effective tax rate for each quarter.

Contact:

Kaydon Corporation
Timothy J. Heasley
Senior Vice President & Chief Financial Officer
(734) 680-2018
or
READ IT ON THE WEB
http://www.kaydon.com