Kewaunee Scientific Announces First Quarter Results and Quarterly Dividend
22 August 2007 - 3:40PM
PR Newswire (US)
STATESVILLE, N.C., Aug. 22 /PRNewswire-FirstCall/ -- Kewaunee
Scientific Corporation (NASDAQ:KEQU) today announced results for
its first quarter ended July 31, 2007 and the declaration of its
quarterly dividend. Net earnings for the quarter were $674,000, or
$0.27 per diluted share, as compared to net earnings of $133,000,
or $0.05 per diluted share, for the first quarter of the prior
year. Earnings continued to benefit from improved profit margins,
increased manufacturing efficiencies, savings from alternate
sources for raw materials and components, and other cost
improvement initiatives. Sales for the quarter were $20,784,000, an
increase of 7.7% from sales of $19,294,000 in the prior year. Sales
from domestic operations were $18,014,000, an increase of 8.0% from
the prior year period. The domestic marketplace for laboratory
products continued to be healthy during the quarter, particularly
in the educational research market and for the larger laboratory
projects. The marketplace for small and mid-size laboratory
projects showed signs of improvement during the quarter, although
it remains very price competitive. Sales from international
operations were $2,770,000, an increase of 5.7% from the prior year
period. Incoming orders remained strong during the quarter. The
order backlog increased to a record $54.7 million at July 31, 2007,
up from $51.1 million at April 30, 2007, and $36.5 million at July
31, 2006. "Our strategic efforts over the past several years to
make Kewaunee a more efficient company are working well," said
William A. Shumaker, President and Chief Executive Officer.
"On-going investments in modern, computerized equipment, the
implementation of 'Lean' manufacturing techniques, and the
continuous pursuit of cost improvements are significantly reducing
our costs and increasing profit margins. Our lower costs make us
more competitive in the marketplace and strengthen our market
position. "We continue to have high expectations for growth in
sales and profitability of our international operations. Although
this business experienced somewhat modest sales growth in the first
quarter, we expect our international operations to have a much
better second quarter, as several significant international
projects are scheduled for delivery and installation." The
Company's balance sheet remains strong. Bank borrowings and capital
lease obligations totaled $5.3 million at July 31, 2007, down from
$9.4 million at July 31, 2006. The debt-to-equity ratio was
.21-to-1 at the end of the quarter, down from .37-to-1 at the end
of the prior year period. Cash on hand was $2.2 million at the end
of the quarter, as compared to $2.5 million at the end of the prior
year period. Working capital was $13.0 million at July 31, 2007, up
from $11.0 million at the end of the prior year period. 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 September 4, 2007, payable on
September 18, 2007. Kewaunee Scientific Corporation is a recognized
leader in the design, manufacture, and installation of scientific
and technical furniture. The Company's corporate headquarters and
domestic 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. Consolidated Statements of
Operations [unaudited] (in thousands, except per share data) Three
Months Ended July 31 July 31 2007 2006 Net sales $20,784 $19,294
Cost of products sold 16,521 16,166 Gross profit 4,263 3,128
Operating expenses 3,148 2,637 Operating earnings 1,115 491 Other
income 3 18 Interest expense (110) (187) Earnings before income
taxes 1,008 322 Income tax expense 312 78 Earnings before minority
interests 696 244 Minority interests in subsidiaries 22 111 Net
earnings $674 $133 Net earnings per share Basic $0.27 $0.05 Diluted
$0.27 $0.05 Weighted average number of common shares outstanding
(in thousands) Basic 2,502 2,492 Diluted 2,521 2,493 Condensed
Consolidated Balance Sheets (in thousands) July 31 April 30 2007
2007 Assets [unaudited] Cash and cash equivalents $1,791 $2,231
Restricted cash 396 372 Receivables, less allowances 18,868 19,061
Inventories 5,694 5,869 Prepaid expenses and other current assets
1,368 981 Total current assets 28,117 28,514 Net property, plant
and equipment 11,196 11,255 Other assets 5,586 5,471 Total Assets
$44,899 $45,240 Liabilities and Stockholders' Equity Short-term
borrowings $4,556 $3,489 Current obligations under capital leases
369 360 Accounts payable 7,107 8,437 Other current liabilities
3,134 3,897 Total current liabilities 15,166 16,183 Other
non-current liabilities 4,943 5,009 Total stockholders' equity
24,790 24,048 Total Liabilities and Stockholders' Equity $44,899
$45,240 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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