STATESVILLE, N.C., Dec. 3 /PRNewswire-FirstCall/ -- Kewaunee
Scientific Corporation (NASDAQ:KEQU) today announced record sales
and earnings for its second quarter ended October 31, 2008. Net
earnings for the quarter were $1,464,000, or $0.57 per diluted
share, up 21% from net earnings of $1,212,000, or $0.47 per diluted
share, for the second quarter of the prior year. Earnings benefited
from increased sales and on-going manufacturing efficiencies. Sales
for the quarter were $27,732,000 up 12% from sales of $24,727,000
in the second quarter of the prior year. Sales benefited from a
continuing healthy marketplace for laboratory products, both
domestically and internationally. Sales from domestic operations
increased to $23,785,000, up from sales of $20,080,000 in the same
period last year, and sales from international operations were
$3,947,000, as compared to sales of $4,647,000 in the same period
last year. The decline in international operations sales resulted
from customer changes in their product delivery dates. The order
backlog increased to a record $61.6 million at October 31, 2008, up
from $60.4 million at the end of the previous quarter and $54.9
million at October 31, 2007. Net earnings for the six months ended
October 31, 2008 were $2,445,000, or $0.95 per diluted share, an
increase of 30% from net earnings for the same period last year of
$1,886,000, or $0.74 per diluted share. Sales for the six months
ended October 31, 2008 were $53,127,000, an increase of 17% from
sales of $45,511,000 in the same period last year. Sales from
domestic operations increased to $44,798,000, up from sales of
$38,094,000 in the same period last year, and sales from
international operations were $8,329,000, up from sales of
$7,417,000 in the same period last year. The Company's balance
sheet and liquidity continue to be strong. Bank borrowings and
capital lease obligations totaled $5,557,000 million at October 31,
2008, as compared to $2,997,000 at October 31, 2007. The
debt-to-equity ratio was .19-to-1, as compared to .12-to-1 at the
end of the same period last year. Cash on hand was $2,690,000, as
compared to $1,796,000 at the end of the same period last year.
Working capital was $17,410,000, up from $14,016,000 at the end of
the same period last year. "Our second quarter record sales,
earnings, and order backlog reflect solid performances in all
aspects of our businesses, both domestically and internationally,"
said William A. Shumaker, President and Chief Executive Officer.
"Our on-going cost reduction strategies again successfully
mitigated increased costs of raw materials, particularly steel and
resin. Vendor pricing for steel and resin appears to have
stabilized in recent weeks, albeit at the recent historically high
levels. We anticipate it may take several months for any decline in
steel and resin prices to make it through the business channels to
our bottom line. We did experience some relief late in the quarter
in our energy and transportation costs. "Thus far, we have not
noticed any significant impact of the global economic slowdown on
the markets we serve, either domestically or internationally," Mr.
Shumaker continued. "Incoming orders have continued to be strong,
and our quotation activity remains at high levels. We believe
Kewaunee is on track for a solid third quarter, and we remain
optimistic about our progress continuing in the fourth quarter."
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 and Middle East 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 (in
thousands, except per share data) (Unaudited) Three Months Ended
Six Months Ended October 31 October 31 2008 2007 2008 2007 Net
sales $27,732 $24,727 $53,127 $45,511 Cost of products sold 21,713
19,174 41,757 35,695 Gross profit 6,019 5,553 11,370 9,816
Operating expenses 3,858 3,370 7,444 6,518 Operating earnings 2,161
2,183 3,926 3,298 Other income (expense) (1) 1 (39) 4 Interest
expense (93) (106) (182) (216) Earnings before income taxes 2,067
2,078 3,075 3,086 Income tax expense 566 658 1,107 970 Earnings
before minority interests 1,501 1,420 2,598 2,116 Minority
interests 37 208 153 230 Net earnings $1,464 $1,212 $2,445 $1,886
Net earnings per share Basic $0.57 $0.48 $0.96 $0.75 Diluted $0.57
$0.47 $0.95 $0.74 Weighted average number of common shares
outstanding (in thousands) Basic 2,555 2,522 2,553 2,512 Diluted
2,562 2,554 2,566 2,538 Condensed Consolidated Balance Sheets (in
thousands) October 31 April 30 2008 2008 (unaudited) Assets Cash
and cash equivalents $2,282 $3,784 Restricted cash 408 480
Receivables, less allowances 25,508 20,087 Inventories 6,866 6,984
Prepaid expenses and other current assets 1,419 1,847 Total current
assets 36,483 33,182 Net property, plant and equipment 11,676
11,825 Other assets 5,109 5,599 Total Assets $53,268 $50,606
Liabilities and Stockholders' Equity Short-term borrowings $4,966
$4,551 Current obligations under capital leases 314 323 Accounts
payable 8,687 8,929 Other current liabilities 5,106 3,459 Total
current liabilities 19,073 17,262 Other non-current liabilities
5,857 6,397 Total stockholders' equity 28,338 26,947 Total
Liabilities and Stockholders' Equity $53,268 $50,606 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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