STATESVILLE, N.C., Aug. 24 /PRNewswire-FirstCall/ -- Kewaunee
Scientific Corporation (Nasdaq: KEQU) today reported sales and
earnings for its first quarter ended July
31, 2010.
Sales for the quarter were $24,858,000, down 5% from sales of $26,249,000 in the first quarter of the prior
year. This was primarily the result of on-going softness in the
domestic marketplace for small and mid-sized laboratory projects
and the scheduled timing of shipments in the order backlog,
partially offset by increased international sales. Domestic sales
were $20,948,000, down from sales of
$23,358,000 in the first quarter last
year, while international sales increased to $3,910,000, up from $2,891,000 in the first quarter last year.
Net earnings for the quarter were $657,000, or $0.25
per diluted share, down from net earnings of $1,071,000, or $0.42 per diluted share, in the first quarter of
the prior year. Earnings were unfavorably impacted by the lower
sales and continued aggressive pricing in all of the Company's
markets.
The order backlog at the end of the quarter remained strong,
both domestic and international. The backlog was $66.9 million at July 31,
2010, up from $60.7 million at
July 31, 2009 and down slightly from
the record level of $68.9 million at
April 30, 2010.
"Overall, the domestic marketplace for laboratory furniture
continues to be healthy, although opportunities vary depending on
the size of the project and geographic area," said Mr. Shumaker,
President and Chief Executive Officer. "Capital spending for
larger laboratory projects continues to hold up relatively well,
while funding and spending for small and mid-sized projects
continues to be the most affected by the economic slowdown.
Capital spending for international laboratory projects
appears to be recovering, as we have seen a significant increase in
international sales opportunities over the past several months.
"Looking forward, our financial plan for fiscal year 2011
includes increased sales and earnings over the prior year, and we
made good progress during the quarter on our operational plan," Mr.
Shumaker continued. "We expect sales and earnings for the second
quarter to improve over the first quarter, although below last
year's strong second quarter results, followed by a stronger second
half of the year. Our expectations are based on a number of
factors, including scheduled delivery dates for orders in our order
backlog, a partial recovery in the global economy, continuing
increased sales opportunities for our products in the international
marketplace, sales and earnings benefits from new products, and
increased manufacturing capabilities in our Statesville and Bangalore facilities."
The Company's balance sheet remains strong. Bank
borrowings and capital lease obligations totaled $7.7 million at July 31,
2010, as compared to $6.6
million at July 31, 2009.
The debt-to-equity ratio was .24-to-1 at the end of the
quarter, as compared to .22-to-1 at the end of the first quarter
last year. Cash on hand was $2.3
million at the end of the quarter, as compared to
$3.5 million at the end of the first
quarter last year. Working capital was $18.9 million at July 31,
2010, as compared to $18.8
million at the end of the first quarter last year.
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 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 [unaudited]
(in thousands, except per share
data)
|
|
|
|
|
|
|
Three Months Ended
|
|
|
July 31
|
July 31
|
|
|
2010
|
2009
|
|
|
|
|
|
|
|
|
|
Net
sales
|
$24,858
|
$26,249
|
|
Cost of products
sold
|
19,859
|
20,485
|
|
|
|
|
|
Gross
profit
|
4,999
|
5,764
|
|
Operating
expenses
|
3,901
|
3,966
|
|
|
|
|
|
Operating
earnings
|
1,098
|
1,798
|
|
Interest
expense
|
(45)
|
(41)
|
|
|
|
|
|
Earnings before
income taxes
|
1,053
|
1,757
|
|
Income tax
expense
|
329
|
589
|
|
|
|
|
|
Net
earnings
|
724
|
1,168
|
|
Less: net earnings
attributable to
|
|
|
|
the
noncontrolling interest
|
(67)
|
(97)
|
|
|
|
|
|
Net earnings
attributable to
|
|
|
|
Kewaunee Scientific Corporation
|
$657
|
$1,071
|
|
|
|
|
|
Net earnings per
share attributable to
|
|
|
|
Kewaunee Scientific Corporation stockholders
|
|
|
|
Basic
|
$0.26
|
$0.42
|
|
Diluted
|
$0.25
|
$0.42
|
|
|
|
|
|
Weighted average
number of common
|
|
|
|
shares
outstanding
|
|
|
|
Basic
|
2,573
|
2,556
|
|
Diluted
|
2,578
|
2,558
|
|
|
|
|
Condensed Consolidated Balance
Sheets
(in thousands)
|
|
|
|
|
|
|
July 31
|
April 30
|
|
|
2010
|
2010
|
|
Assets
|
[unaudited]
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$1,812
|
$1,722
|
|
Restricted cash
|
521
|
544
|
|
Receivables, less
allowances
|
27,425
|
26,169
|
|
Inventories
|
8,226
|
8,350
|
|
Prepaid expenses and other
current assets
|
1,761
|
1,797
|
|
Total Current
Assets
|
39,745
|
38,582
|
|
Net property, plant and
equipment
|
15,405
|
13,815
|
|
Other assets
|
4,230
|
4,224
|
|
Total Assets
|
$59,380
|
$56,621
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
Short-term borrowings
|
$7,496
|
$4,872
|
|
Current obligations under
capital leases
|
78
|
82
|
|
Accounts payable
|
9,046
|
9,540
|
|
Other current
liabilities
|
4,184
|
4,003
|
|
Total Current
Liabilities
|
20,804
|
18,497
|
|
Other non-current
liabilities
|
6,563
|
6,452
|
|
Total
Liabilities
|
27,367
|
24,949
|
|
Noncontrolling
interest
|
1,273
|
1,239
|
|
Kewaunee Scientific Corporation
equity
|
30,740
|
30,433
|
|
Total Equity
|
32,013
|
31,672
|
|
Total Liabilities and
Equity
|
$59,380
|
$56,621
|
|
|
|
|
Contact:
|
D. Michael Parker
|
|
|
704/871-3290
|
|
|
|
SOURCE Kewaunee Scientific Corporation
Copyright . 24 PR Newswire