STATESVILLE, N.C., June 23 /PRNewswire-FirstCall/ -- Kewaunee
Scientific Corporation (Nasdaq: KEQU) today announced results for
its year and fourth quarter ended April 30,
2010.
Sales for the year were $99,093,000, down 4.7% from sales of $103,978,000 in the prior year. The lower sales
resulted from a decline in sales of small and mid-sized projects
during the year, along with lower sales from the Company's
international operations. Higher sales of larger domestic
laboratory projects partially offset the decrease.
Net earnings for the year were $3,572,000, or $1.39 per diluted share, down from net earnings
of $4,247,000, or $1.66 per diluted share, in the prior year.
Earnings for the year were unfavorably impacted by an after-tax
increase in pension expense of $627,000, or $0.24
per diluted share, and the lower sales, as compared to the prior
year. The pension expense increase primarily resulted from the
prior year's decline in the market value of pension
investments.
The order backlog increased to a record $68.9 million at April 30,
2010, up from $62.7 million at
April 30, 2009. The order backlog,
which is heavily weighted with larger projects that have longer
delivery requirements, benefited from a large international order
received during the year.
Sales from domestic operations were $87,561,000, down 3.0% from sales of $90,250,000 in the prior year, and sales from
international operations for the year were $11,532,000, down 16.0% from sales of
$13,728,000 in the prior year. The
international laboratory furniture marketplace, which was hit
particularly hard by the economic slowdown, appeared to show signs
of recovery late in the year as quotation activity and sales
increased.
"The economic slowdown adversely affected all of the Company's
markets, both domestically and internationally," said William A. Shumaker, President and Chief
Executive Officer. "A decline in small and mid-sized projects
occurred as customers deferred placing orders due to the recession.
These types of projects are more sensitive to current
economic conditions and are subject to delay because of their size
and funding sources. Larger laboratory projects are less
impacted by changes in economic conditions, as they are normally
funded far in advance of construction. Also, our operating
costs increased in the second half of the year, as the irregular
inflow of orders and changes to project schedules disrupted factory
production and required us to spend much higher overtime
dollars.
"However, in the midst of these challenges, progress was made in
a number of important areas," continued Mr. Shumaker. "We finished
the year with a record order backlog as we continued to win
projects in all of our markets, especially larger projects. In the
second quarter, we were successful in winning orders for large
projects in Saudi Arabia and
Kuwait, areas we have targeted as
important new growth markets. Following the move into our new,
larger Bangalore, India plant
earlier in the year, in the fourth quarter, we began an expansion
of our manufacturing facilities in Statesville. This project is progressing
well and is scheduled for completion in early fall."
Sales for the fourth quarter were $23,942,000, down 3.6% from sales of $24,828,000 in the same period of the prior year.
Sales from domestic operations were $20,409,000, down 11.1% from sales of
$22,954,000 in the same quarter of
the prior year. Sales from international operations increased
to $3,533,000, up from sales of
$1,874,000 in the prior year
period.
Net earnings for the fourth quarter were $528,000, or $0.20
per diluted share, down from net earnings of $920,000, or $0.36
per diluted share, in the prior year period. Earnings for the
quarter were unfavorably impacted by lower sales and an after-tax
increase in pension expense of $157,000, or $0.06
per diluted share, as compared to the prior year.
The Company's financial condition remains strong. Working
capital increased to $20.1 million at
April 30, 2010, up from $18.9 million at the end of the prior year.
Cash on hand at the end of the year was $2.3 million, as compared to $4.0 million at the end of the prior year. Bank
borrowings and capital lease obligations were $5.1 million at year-end, as compared to
$6.1 million at the end of the prior
year, and the debt-to-equity ratio was .17-to-1 at year-end, as
compared to .23-to-1 at the end of the prior year.
"Looking forward, our strong order backlog, increased
manufacturing capabilities at our new Bangalore plant and Statesville operations, expanding
international opportunities, strong financial position, and the
commitment of our associates provide us optimism for another good
year in fiscal year 2011," continued Mr. Shumaker.
Kewaunee Scientific Corporation is a recognized leader in the
design, manufacture, and installation of scientific and technical
furniture. The Company's corporate headquarters are located in
Statesville, North Carolina.
The Company's manufacturing facilities are located in
Statesville and Bangalore, India. The Company 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.
Contact:
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D. Michael Parker
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704/871-3290
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Consolidated Statements of
Operations
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(in thousands, except per
share data)
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Three Months Ended
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Years Ended
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April 30
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April 30
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2010
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2009
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2010
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2009
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(Unaudited)
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Net sales
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$23,942
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$24,828
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$99,093
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$103,978
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Cost of products sold
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19,198
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19,759
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77,690
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82,605
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Gross profit
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4,744
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5,069
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21,403
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21,373
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Operating expenses
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3,971
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3,405
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15,576
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14,289
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Operating earnings
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773
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1,664
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5,827
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7,084
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Other income (expense)
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1
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8
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1
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(28)
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Interest expense
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(42)
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(49)
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(157)
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(280)
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Earnings before income taxes
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732
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1,623
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5,671
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6,776
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Income tax expense
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248
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669
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1,921
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2,264
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Net earnings
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484
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954
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3,750
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4,512
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Less: net earnings attributable to
the
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noncontrolling
interest
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(44)
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34
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178
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265
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Net earnings attributable to
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Kewaunee
Scientific Corporation
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$528
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$920
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$3,572
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$4,247
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Net earnings per share attributable to
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Kewaunee Scientific Corporation stockholders
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Basic
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$0.20
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$0.36
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$1.39
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$1.66
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Diluted
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$0.20
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$0.36
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$1.39
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$1.66
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Weighted average number of common
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shares outstanding (in
thousands)
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Basic
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2,572
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2,556
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2,564
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2,555
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Diluted
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2,584
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2,556
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2,575
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2,561
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Condensed Consolidated Balance
Sheets
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(in thousands, except per
share data)
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April 30
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April 30
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Assets
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2010
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2009
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Cash and cash
equivalents
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$1,722
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$3,559
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Restricted cash
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544
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456
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Receivables, less
allowances
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26,169
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24,526
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Inventories
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8,350
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7,839
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Prepaid expenses and other current
assets
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1,797
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1,165
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Total current
assets
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38,582
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37,545
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Net property, plant and equipment
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13,815
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11,369
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Other assets
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4,224
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3,615
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Total Assets
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$56,621
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$52,529
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Liabilities and Stockholders'
Equity
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Short-term borrowings
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$4,872
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$5,720
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Current obligations under capital
leases
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82
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220
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Accounts payable
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9,540
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8,812
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Other current liabilities
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4,003
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3,911
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Total current
liabilities
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18,497
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18,663
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Other non-current liabilities
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6,452
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5,607
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Total liabilities
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24,949
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24,270
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Noncontrolling interest
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1,239
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1,306
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Kewaunee Scientific Corporation equity
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30,433
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26,953
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Total equity
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31,672
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28,259
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Total Liabilities and Stockholders'
Equity
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$56,621
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$52,529
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SOURCE Kewaunee Scientific Corporation