Kewaunee Scientific Announces Third Quarter Results and Quarterly Dividend
22 Februar 2005 - 10:30PM
PR Newswire (US)
Kewaunee Scientific Announces Third Quarter Results and Quarterly
Dividend STATESVILLE, N.C., Feb. 22 /PRNewswire-FirstCall/ --
Kewaunee Scientific Corporation (NASDAQ:KEQU) today reported
results for its third quarter ended January 31, 2005 and announced
its regular quarterly dividend. Sales for the quarter were
$15,623,000, a decrease of 27% from sales of $21,454,000 in the
same period last year. A net loss of $742,000, or $0.30 per diluted
share, was reported for the quarter. This compares to net earnings
of $291,000, or $0.12 per diluted share, in the same period last
year. Sales for the quarter were adversely affected by the
continuing soft marketplace for laboratory furniture, although the
marketplace appeared to show improvement late in the quarter.
Spending for new research projects by pharmaceutical companies
continued to be below levels of recent years. Additionally, the
number of projects generally available in the marketplace was
reduced, or construction has been delayed, by the significant
increases in the cost of construction materials over the past year.
Funding available for education construction projects also
continued to be affected by reduced state spending budgets. Order
activity improved over the two previous quarters. The order backlog
increased to $41.7 million at January 31, 2005. The order backlog
was $38.6 million at October 31, 2004 and $39.6 million at July 31,
2004. Earnings for the quarter were adversely affected by low sales
volumes, extraordinarily higher costs for certain raw materials,
particularly steel and epoxy resin, reserves established for
several project disputes, and cost overruns on several completed
projects. The impact of these items was partially offset by reduced
expenses resulting from the workforce reductions announced last
quarter and aggressive cost reduction activities. "The business
environment remained difficult during the quarter," said William A.
Shumaker, President and Chief Executive Officer of Kewaunee.
"However, as we anticipated, we have begun to see increased
activity in the marketplace since the Presidential election in
November. With this improvement expected to continue and our
increased order backlog, we expect substantially improved sales
volume in the fourth quarter compared to the third quarter. In view
of this increased sales volume and with the number of unusual
expenses that affected our third quarter believed to be behind us,
we expect a profitable fourth quarter. "Our balance sheet remains
strong," Mr. Shumaker continued. "Total debt was $4.7 million at
January 31, 2005, down from $7.6 million at October 31, 2004, while
cash on hand increased to $1.1 million. Operations provided cash of
$3.8 million during the quarter. Profits of our technical furniture
business continue to improve over the prior year as this market
strengthens. Our subsidiaries in Asia serving the rapidly-expanding
Asian laboratory research market also continue to grow and
contribute nicely, though modestly, to our profits." Sales for the
nine months ended January 31, 2005 were $54,276,000, a decrease of
23% from sales of $70,051,000 in the comparable period last year. A
net loss of $441,000, or $0.18 per diluted share, was reported for
the nine months. This compares to net earnings of $1,170,000, or
$.47 per diluted share, in the comparable period last year. The
Company also announced today that its Board of Directors approved a
cash dividend of seven cents per outstanding share to stockholders
of record at the close of business on March 4, 2005, payable on
March 18, 2005. Kewaunee Scientific Corporation is a recognized
leader in the design, manufacture, and installation of scientific
and technical furniture. The Company's corporate headquarters and
manufacturing facilities are located in Statesville, North
Carolina. Kewaunee Scientific's website is located at
http://www.kewaunee.com/ . Certain statements in this release
constitute "forward-looking" statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors that could significantly impact
results or achievements expressed or implied by such
forward-looking statements. These factors include, but are not
limited to, economic, competitive, governmental, and technological
factors affecting the Company's operations, markets, products,
services, and prices. Condensed Consolidated Statements of
Operations (unaudited) (in thousands, except per share data) 3
Months Ended 9 Months Ended January 31 January 31 2005 2004 2005
2004 Net sales $15,623 $21,454 $54,276 $70,051 Cost of products
sold 13,586 17,736 45,310 58,626 Gross profit 2,037 3,718 8,966
11,425 Operating expenses 3,030 3,206 9,336 9,528 Operating
earnings (loss) (993) 512 (370) 1,897 Other expense (131) (57)
(298) (69) Earnings (loss) before income taxes (1,124) 455 (668)
1,828 Income tax expense (benefit) (382) 164 (227) 658 Net earnings
(loss) $(742) $291 $(441) $1,170 Net earnings (loss) per share
Basic $(0.30) $0.12 $(0.18) $0.47 Diluted $(0.30) $0.12 $(0.18)
$0.47 Weighted average number of common shares outstanding (in
thousands) Basic 2,492 2,486 2,491 2,485 Diluted 2,493 2,499 2,495
2,493 Condensed Consolidated Balance Sheets (in thousands) January
31 April 30 Assets 2005 2004 (unaudited) Cash and cash equivalents
$1,128 $1,167 Receivables, less allowances 18,756 24,987
Inventories 3,953 4,285 Prepaid expenses and other current assets
1,291 1,097 Total current assets 25,128 31,536 Net property, plant
and equipment 10,729 11,362 Other assets 6,513 7,563 Total Assets
$42,370 $50,461 Liabilities and Stockholders' Equity Short-term
borrowings $3,263 $6,996 Current portion of long-term debt 1,169
1,118 Accounts payable 5,189 6,924 Other current liabilities 2,535
3,881 Total current liabilities 12,156 18,919 Long-term debt 257
931 Other non-current liabilities 4,153 3,820 Total stockholders'
equity 25,804 26,791 Total Liabilities and Stockholders' Equity
$42,370 $50,461 Contact: D. Michael Parker 704/871-3290 DATASOURCE:
Kewaunee Scientific Corporation CONTACT: D. Michael Parker of
Kewaunee Scientific Corporation, +1-704-871-3290 Web site:
http://www.kewaunee.com/
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