Kewaunee Scientific Announces Significantly Improved Second Quarter Results and Quarterly Dividend
20 November 2007 - 2:30PM
PR Newswire (US)
STATESVILLE, N.C., Nov. 20 /PRNewswire-FirstCall/ -- Kewaunee
Scientific Corporation (NASDAQ:KEQU) today announced results for
its second quarter ended October 31, 2007 and the declaration of
its quarterly dividend. Net earnings for the quarter were
$1,212,000, or $0.47 per diluted share, up 113% from net earnings
of $569,000, or $0.23 per diluted share, for the second quarter of
the prior year. Earnings benefited from a strong performance from
the Company's domestic operations, significantly improved profit
margins, and continued growth of its international operations.
Sales for the quarter were $24.7 million, up 15.6% from sales of
$21.4 million in the second quarter of the prior year. Sales from
domestic operations increased to $20.1 million, up 17.9% from the
same period last year. Sales from international operations
increased to $4.6 million for the quarter, up 6.9% from the same
period last year. Net earnings for the six months ended October 31,
2007 were $1.9 million, or $0.74 per diluted share, an increase of
169% from net earnings for the same period last year of $702,000,
or $0.28 per diluted share. The gross profit margin for the
six-month period increased to 21.6% from 17.7% in the same period
last year. Sales for the six months ended October 31, 2007 were
$45.5 million, an increase of 11.9% from sales of $40.7 million in
the same period last year. Incoming orders remained strong during
the quarter. The order backlog increased for the fourth consecutive
quarter to a record $54.9 million at October 31, 2007, which was
slightly above the end of the previous quarter and up from $34.3
million at October 31, 2006. The Company's balance sheet further
strengthened during the quarter. Bank borrowings and capital lease
obligations declined to $3.0 million at October 31, 2007, down from
$9.1 million at October 31, 2006. The debt-to-equity ratio was
.12-to-1 at the end of the quarter, down from .35-to-1 at the end
of the same period last year. Cash on hand was $1.8 million at the
end of the quarter, as compared to $1.0 million at the end of the
same period last year. Working capital was $14.0 million at October
31, 2007, up from $11.6 million at the end of the same period last
year. The Company's international operations continued to execute
well during the quarter. To allow the Company to take advantage of
rapidly growing sales opportunities in Asia and the Middle East,
during the quarter the Company's Board of Directors approved the
relocation and expansion of the Company's manufacturing facility in
Bangalore, India to a new much larger facility in the Bangalore
area. "We remain optimistic about Kewaunee's long-term success and
profitability, both in the domestic and international markets,"
said William A. Shumaker, President and Chief Executive Officer.
"We look forward to building on the progress made in our domestic
operations, and we have high expectations for continued growth in
sales and earnings of our international operations, particularly
after our new manufacturing facility in Bangalore becomes
operational early next fiscal year. Regarding the remainder of our
current fiscal year, we expect our significant progress to
continue." 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
November 30, 2007, payable on December 14, 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. Contact: D. Michael Parker
704/871-3290 Consolidated Statements of Operations (in thousands,
except per share data) (Unaudited) Three Months Ended Six Months
Ended October 31 October 31 2007 2006 2007 2006 Net sales $24,727
$21,385 $45,511 $40,679 Cost of products sold 19,174 17,305 35,695
33,471 Gross profit 5,553 4,080 9,816 7,208 Operating expenses
3,370 2,899 6,518 5,536 Operating earnings 2,183 1,181 3,298 1,672
Other income 1 26 4 44 Interest expense (106) (195) (216) (382)
Earnings before income taxes 2,078 1,012 3,086 1,334 Income tax
expense 658 328 970 406 Earnings before minority interests 1,420
684 2,116 928 Minority interests in subsidiaries 208 115 230 226
Net earnings $1,212 $569 $1,886 $702 Net earnings per share Basic
$0.48 $0.23 $0.75 $0.28 Diluted $0.47 $0.23 $0.74 $0.28 Weighted
average number of common shares outstanding (in thousands) Basic
2,522 2,492 2,512 2,492 Diluted 2,554 2,492 2,538 2,493 Condensed
Consolidated Balance Sheets (in thousands) October 31 April 30 2007
2007 (unaudited) Assets Cash and cash equivalents $1,351 $2,231
Restricted cash 445 372 Receivables, less allowances 20,169 19,061
Inventories 6,421 5,869 Prepaid expenses and other current assets
1,209 981 Total current assets 29,595 28,514 Net property, plant
and equipment 11,416 11,255 Other assets 6,011 5,471 Total Assets
$47,022 $45,240 Liabilities and Stockholders' Equity Short-term
borrowings $2,336 $3,489 Current obligations under capital leases
351 360 Accounts payable 8,423 8,437 Other current liabilities
4,469 3,897 Total current liabilities 15,579 16,183 Obligations
under capital leases 310 476 Other non-current liabilities 5,073
4,533 Total stockholders' equity 26,060 24,048 Total Liabilities
and Stockholders' Equity $47,022 $45,240 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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