STATESVILLE, N.C., June 26, 2012 /PRNewswire/ -- Kewaunee Scientific
Corporation (Nasdaq: KEQU) today announced results for its fourth
quarter and year ended April 30,
2012.
Fourth Quarter Results
Net earnings for the fourth quarter were $1,256,000, or $0.49 per diluted share, up from net earnings of
$252,000, or $0.10 per diluted share, in the same period of
the prior year. Earnings for the quarter benefited from
strong international operations sales and earnings, while
domestic operations earnings benefited from lower operating costs
resulting from cost savings initiatives commenced earlier in the
year.
Sales for the quarter were $28,990,000, up 8% from sales of $26,952,000 in the same period of the prior year.
Sales from domestic operations were $19,607,000, down 10% from sales of $21,797,000 in the prior year. However, incoming
domestic orders for the quarter increased 22% over the same quarter
last year. Sales from international operations increased to
$9,383,000, up 82% from sales of
$5,155,000 in the same period of the
prior year, as the Company began manufacturing and shipping
products for several large projects in its order backlog.
The order backlog increased to a record $86.2 million at April 30,
2012, up from $65.7 million at
April 30, 2011, with both domestic
and international orders contributing to the growth. The backlog at
April 30, 2012 includes a contract
awarded during the quarter for laboratory furniture and equipment
for the Kuwait University College of
Engineering and Petroleum-Women's Campus. The contract, which is in
excess of $11 million, was awarded
through Kewaunee's dealer in Kuwait, Advanced Technology Company (ATC). The
Company expects to begin manufacturing and shipping products under
the contract in the late summer or early fall of calendar year
2013. The majority of the manufactured products will be produced at
the Company's Statesville
facilities. This contract is another indication of the Company's
increased international presence and capabilities.
"We are very pleased with our operating results for the
quarter," said William A. Shumaker,
Kewaunee's Chief Executive Officer. "Our international operations
had an outstanding quarter for sales and earnings, as manufacturing
and shipping occurred under several large contracts. In
Statesville, earnings improved
significantly, as we experienced lower operating costs resulting
from cost savings initiatives."
Fiscal Year 2012 Results
Sales for the year were $102,847,000, up 3% from sales of $100,003,000 in the prior year. Sales from
domestic operations were $83,971,000,
as compared to sales of $84,121,000
in the prior year. The domestic marketplace for privately-funded
projects held up relatively well during the year, although at
extremely competitive prices, while opportunities and orders for
publicly-funded K-12 educational projects, primarily wood
furniture, dropped sharply in the second quarter of the year and
have continued to remain at historically low levels. Sales from
international operations increased to $18,876,000, up 19% from sales of $15,882,000 in the prior year.
Net earnings for the year were $1,031,000, or $0.40 per diluted share, down from net earnings
of $1,850,000, or $0.72 per diluted share, in the prior year.
Earnings for the year were unfavorably impacted by lower selling
prices, a significant increase in raw material costs beginning
early in the year, particularly for steel and epoxy resin, and a
large drop-off in demand for wood furniture projects. Earnings for
the year were favorably impacted by strong international sales and
earnings in the second half of the year, particularly the fourth
quarter, and lower operating costs resulting from headcount
reductions and other cost savings initiatives at Statesville.
The Company's balance sheet and financial condition remain
strong. Cash on hand at the end of the year was $6.9 million, as compared to $3.0 million at the end of the prior year.
Working capital increased to $23.4
million at April 30, 2012, up
from $22.1 million at the end of the
prior year. Short term borrowings under the Company's
$15 million bank line of credit were
$6.8 million, as compared to
$6.6 million at the end of the prior
year, and total bank borrowings and capital lease obligations were
$10.5 million, as compared to
$10.6 million at the end of the prior
year. The debt-to-equity ratio was .36-to-1 at year-end, as
compared to .34-to-1 at the end of the prior year.
Outlook
"Looking forward to fiscal year 2013, I remain cautiously
optimistic," Mr. Shumaker continued. "My optimism is based on a
number of factors. On the domestic front, we enter the year with a
strengthened and expanded dealer network, which we believe will
result in increased sales and earnings. We are also realizing lower
operating costs from our cost savings initiatives put in place over
the past year. On the international front, we have also
strengthened and expanded our dealer network, better positioning us
to take advantage of the growing number of laboratory project
opportunities in Asia and the
Middle East. Furthermore, both
domestic and international operations will benefit from our record
order backlog.
"At the same time, fiscal year 2013 will present us with
significant challenges. The ongoing world-wide economic slowdown
continues to depress construction activity and pricing in the
marketplace. Customer delivery requirements for large international
projects, more so than domestic projects, often are delayed due to
changes in construction schedules, resulting in uneven reportable
sales and earnings."
Kewaunee Scientific Corporation is a recognized leader in the
design, manufacture, and installation of laboratory, healthcare,
and technical furniture products. Laboratory furniture products
include both steel and wood cabinetry, fume hoods, adaptable
modular systems, moveable workstations, biological safety cabinets,
and epoxy resin counters and sinks. Healthcare furniture products
include laminate casework, systems, and related products for
healthcare applications. Technical furniture products include
column systems, slotted-post systems, pedestal systems, and
stand-alone benches.
The Company's corporate headquarters are located in Statesville, North Carolina. Three
manufacturing facilities are located in Statesville, NC serving the domestic and
international markets. One manufacturing facility is located in
Bangalore, India serving the local
and Asian markets. The Company has subsidiaries in Singapore and India. 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)
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
Years
Ended
|
|
|
|
April
30
|
April
30
|
|
|
|
2012
|
2011
|
2012
|
2011
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Net
sales
|
$28,990
|
$26,952
|
$102,847
|
$100,003
|
Cost of
products sold
|
21,638
|
22,247
|
83,691
|
80,719
|
Gross
profit
|
7,352
|
4,705
|
19,156
|
19,284
|
Operating
expenses
|
4,493
|
4,174
|
16,443
|
16,127
|
Operating
earnings
|
2,859
|
531
|
2,713
|
3,157
|
Other
income (expense)
|
43
|
4
|
271
|
4
|
Interest
expense
|
(112)
|
(94)
|
(445)
|
(199)
|
|
|
|
|
|
Earnings
before income taxes
|
2,790
|
441
|
2,539
|
2,962
|
Income tax
expense
|
976
|
72
|
739
|
864
|
|
|
|
|
|
Net
earnings
|
1,814
|
369
|
1,800
|
2,098
|
|
|
|
|
|
Less: net earnings attributable to the
noncontrolling interest
|
558
|
117
|
769
|
248
|
|
|
|
|
|
Net
earnings attributable to
Kewaunee Scientific
Corporation
|
$1,256
|
$252
|
$1,031
|
$1,850
|
Net
earnings per share attributable to
Kewaunee Scientific Corporation
stockholders
|
|
|
|
|
Basic
|
$0.49
|
$0.10
|
$0.40
|
$0.72
|
Diluted
|
$0.49
|
$0.10
|
$0.40
|
$0.72
|
|
|
|
|
|
Weighted
average number of common
shares outstanding (in
thousands)
|
|
|
|
|
Basic
|
2,579
|
2,578
|
2,579
|
2,575
|
Diluted
|
2,580
|
2,593
|
2,580
|
2,585
|
Condensed Consolidated Balance
Sheets
|
(in
thousands)
|
|
|
|
|
April
30
|
April
30
|
|
2012
|
2011
|
Assets
|
|
|
Cash and
cash equivalents
|
$6,188
|
$2,402
|
Restricted
cash
|
704
|
553
|
Receivables, less allowances
|
23,244
|
27,346
|
Inventories
|
11,760
|
10,466
|
Prepaid
expenses and other current assets
|
1,702
|
1,612
|
Total
current assets
|
43,598
|
42,379
|
Net
property, plant and equipment
|
15,346
|
16,575
|
Other
assets
|
5,192
|
4,104
|
Total
Assets
|
$64,136
|
$63,058
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
Short-term
borrowings
|
$6,816
|
$6,588
|
Current
obligations under capital leases
|
36
|
83
|
Current
portion of long-term debt
|
200
|
200
|
Accounts
payable
|
8,848
|
9,770
|
Other
current liabilities
|
4,340
|
3,623
|
Total
current liabilities
|
20,240
|
20,264
|
Other
non-current liabilities
|
12,238
|
9,778
|
Total
liabilities
|
32,478
|
30,042
|
Noncontrolling interest
|
2,147
|
1,525
|
Kewaunee
Scientific Corporation equity
|
29,511
|
31,491
|
Total
equity
|
31,658
|
33,016
|
Total
Liabilities and Stockholders' Equity
|
$64,136
|
$63,058
|
Contact: D. Michael Parker
704/871-3290
SOURCE Kewaunee Scientific Corporation