Kewaunee Scientific Reports Results for Second Quarter
22 November 2005 - 5:54PM
PR Newswire (US)
STATESVILLE, N.C., Nov. 22 /PRNewswire-FirstCall/ -- Kewaunee
Scientific Corporation (NASDAQ:KEQU) today reported results for its
second quarter ended October 31, 2005. Sales for the quarter were
$22,319,000, an increase of 21.5% over the same period last year
and an increase of 9.9% over the previous quarter. Net earnings for
the quarter were $239,000, or $0.10 per diluted share, as compared
to net earnings of $108,000, or $0.04 per diluted share, in the
same quarter last year. The laboratory products marketplace
continued its improvement during the quarter, with sales increases
experienced in all our major product lines and in our international
business. Our outstanding quotations for projects of greater than
$1 million continue to be at the highest level in several years.
The order backlog was $35.2 million at October 31, 2005, as
compared to $38.6 million at October 31, 2004. Earnings for the
quarter were unfavorably impacted by aggressive pricing in the
marketplace and continuing higher raw material, energy, and
transportation costs. The impact of these factors was partially
offset by reduced costs achieved from on-going cost reduction
activities, including the diligent pursuit of more competitive
pricing from new and existing suppliers. The Company's financial
condition remains strong. Total debt at October 31, 2005 was $6.4
million, down from $7.6 million at October 31, 2004, while cash on
hand at the end of the quarter was $1.0 million. Operations
provided cash of $900,000 during the quarter. Book value per share
was $10.67 at October 31, 2005. "The marketplace for our products
continues to be much improved over last year," said William A.
Shumaker, President and Chief Executive Officer of Kewaunee.
"However, we have much more work to do to achieve acceptable profit
margins, and we continue to work relentlessly toward this goal. A
number of cost improvement projects are currently ongoing,
including significant capital projects in all three of our
Statesville plants. Although the completion of these projects will
increase costs in our third quarter, which is traditionally our
weakest quarter, we feel they are important as we work toward
reducing our costs over the long term." Sales for the six months
ended October 31, 2005 were $42,627,000, an increase of 10.3% over
the comparable period last year. Net earnings for the six months
were $1,002,000, or $0.40 per diluted share. Excluding a gain on
the sale of our former Lockhart, Texas property in the first
quarter, net earnings for the six months were $462,000, or $0.18
per diluted share, as compared to net earnings of $301,000, or
$0.12 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 December 5, 2005, payable on
December 19, 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. The Company also has subsidiaries in Singapore and
Bangalore, India that serve the Asian markets. 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. Contact: D. Michael Parker
704/871-3290 Condensed Consolidated Statements of Operations
(unaudited) (in thousands, except per share data) Three Months
Ended Six Months Ended October 31 October 31 2005 2004 2005 2004
Net sales $22,319 $18,365 $42,627 $38,653 Cost of products sold
18,834 14,812 35,756 31,724 Gross profit 3,485 3,553 6,871 6,929
Operating expenses 2,953 3,260 5,873 6,306 Operating earnings 532
293 998 623 Other income (expense) 1 (6) 880 40 Interest expense
(118) (84) (205) (170) Earnings before income taxes 415 203 1,673
493 Income tax expense 137 55 594 155 Earnings before minority
interests 278 148 1,079 338 Minority interests 39 40 77 37 Net
earnings $239 $108 $1,002* $301 Net earnings per share Basic $0.10
$0.04 $0.40 $0.12 Diluted $0.10 $0.04 $0.40 $0.12 Weighted average
number of common shares outstanding (in thousands) Basic 2,492
2,492 2,492 2,491 Diluted 2,493 2,494 2,493 2,497 *Includes a
non-recurring after-tax gain on the sale of property in the amount
of $540,000, or $.22 per diluted share. Condensed Consolidated
Balance Sheets (in thousands) October 31 April 30 Assets 2005 2005
(unaudited) Cash and cash equivalents $588 $225 Restricted Cash 367
379 Receivables, less allowances 21,058 21,683 Inventories 4,342
3,542 Prepaid expenses and other current assets 1,416 951 Total
current assets 27,771 26,780 Net property, plant and equipment
11,611 10,730 Other assets 7,563 8,702 Total Assets $46,945 $46,212
Liabilities and Stockholders' Equity Short-term borrowings $5,567
$3,778 Current portion of long-term debt 372 931 Current
obligations under capital leases 137 111 Accounts payable 7,001
8,558 Other current liabilities 3,203 3,021 Total current
liabilities 16,280 16,399 Other non-current liabilities 4,077 3,824
Total stockholders' equity 26,588 25,989 Total Liabilities and
Stockholders' Equity $46,945 $46,212 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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