STATESVILLE, N.C., Aug. 21, 2012 /PRNewswire/ -- Kewaunee Scientific
Corporation (Nasdaq: KEQU) today reported sales and earnings for
its first quarter ended July 31,
2012.
Net earnings for the quarter were $634,000, or $0.25
per diluted share, up from net earnings of $22,000, or $0.01
per diluted share, in the first quarter of the prior year. Earnings
for the quarter were favorably impacted by lower operating costs
resulting from cost savings initiatives commenced in the second
half of the prior year and the Company's strategy to move toward a
more profitable product sales mix. Sales for the quarter were
$26,683,000, up 1.4% from sales of
$26,321,000 in the first quarter last
year.
Domestic sales were $22,629,000,
down 3.3% from sales of $23,396,000
in the prior year period. The lower domestic sales dollars were
expected as part of a strategy underway by the Company to sell more
laboratory projects through its strengthened and expanded dealer
network. This is resulting in increased sales of manufactured
products, but lower overall sales, as the dealers provide the
related project management, installation, and other service
activities, which are typically less profitable for the Company.
Regarding the laboratory marketplace, opportunities for privately
funded projects continue to hold up relatively well, although at
extremely competitive prices, while opportunities for publicly
funded educational projects remain well below pre-recession
levels.
International sales were $4,054,000, up 38.6% from $2,925,000 in the prior year period. The Company
continues to make changes to strengthen and expand its
international dealer network to better position the Company to take
advantage of increased sales opportunities in the fast growing
research markets of Asia and the
Middle East.
The order backlog increased to a record $86.7 million at July 31,
2012, up from $86.2 million at
April 30, 2012 and $69.7 million at July 31,
2011.
The Company's balance sheet continues to be strong. Cash on hand
was $8.4 million at the end of the
quarter, as compared to $3.6 million
at the end of the first quarter last year. Working capital
was $24.0 million, as compared to
$22.1 million at the end of the first
quarter last year. Short-term borrowings under the Company's
$15 million bank line of credit were
$6.5 million, as compared to
$8.7 million at the end of the first
quarter last year. Total bank borrowings and capital lease
obligations were $10.1 million, as
compared to $12.6 million at the end
of the first quarter last year, and the debt-to-equity ratio was
.34-to-1, as compared to .40-to-1 at the end of the first quarter
last year.
"We are pleased with our continuing progress," said William A. Shumaker, Kewaunee's Chief Executive
Officer. "Sales and earnings are benefiting from our
strengthened and expanded dealer network, new innovative products
being introduced to the marketplace, and lower manufacturing and
overhead costs. Additionally, earnings and profit margins are
benefiting from an improved product mix related to our strategy to
sell more laboratory projects through our dealer network.
"Looking forward, I expect sales and earnings for fiscal year
2013 to be much improved over fiscal year 2012. Our strengthened
dealer organization, both domestically and internationally, is
providing us increased opportunities for sales and orders, while
our lower operating costs are improving profit margins and making
us more competitive in the marketplace."
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, storage 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
[unaudited]
|
|
(in
thousands, except per share data)
|
|
|
|
|
|
|
Three
Months Ended
|
|
July
31
|
|
July
31
|
|
2012
|
|
2011
|
|
|
|
|
Net
sales
|
$26,683
|
|
$26,321
|
Cost of products
sold
|
21,440
|
|
22,133
|
|
|
|
|
Gross
profit
|
5,243
|
|
4,188
|
Operating
expenses
|
4,138
|
|
3,955
|
|
|
|
|
Operating
earnings
|
1,105
|
|
233
|
Other income
(expense)
|
68
|
|
(1)
|
|
|
|
|
Interest
expense
|
(114)
|
|
(95)
|
|
|
|
|
Earnings before
income
taxes
|
1,059
|
|
137
|
Income tax
expense
|
371
|
|
29
|
|
|
|
|
Net
earnings
|
688
|
|
108
|
Less: net earnings
attributable to
|
|
|
|
the
noncontrolling
interest
|
54
|
|
86
|
|
|
|
|
Net earnings attributable
to
|
|
|
|
Kewaunee Scientific
Corporation
|
$634
|
|
$22
|
|
|
|
|
Net earnings per share
attributable to
|
|
|
|
Kewaunee Scientific Corporation stockholders
|
|
|
|
Basic
|
$0.25
|
|
$0.01
|
Diluted
|
$0.25
|
|
$0.01
|
|
|
|
|
Weighted average number of
common
|
|
|
|
shares
outstanding
|
|
|
|
Basic
|
2,581
|
|
2,579
|
Diluted
|
2,584
|
|
2,580
|
Condensed Consolidated Balance
Sheets
|
|
(in
thousands)
|
|
|
|
|
|
|
July
31
|
|
April 30
|
|
2012
|
|
2012
|
|
[unaudited]
|
|
|
Assets
|
|
|
|
Cash and
cash
equivalents
|
$7,720
|
|
$6,188
|
Restricted
cash
|
653
|
|
704
|
Receivables, less
allowances
|
22,542
|
|
23,244
|
Inventories
|
11,717
|
|
11,760
|
Prepaid
expenses and other current
assets
|
2,217
|
|
1,702
|
Total Current
Assets
|
44,849
|
|
43,598
|
Net
property, plant and
equipment
|
15,122
|
|
15,346
|
Other
assets
|
5,219
|
|
5,192
|
Total
Assets
|
$65,190
|
|
$64,136
|
|
|
Liabilities and Equity
|
|
Short-term
borrowings
|
$6,501
|
|
$6,816
|
Current
obligations under capital
leases
|
15
|
|
36
|
Current
portion of long-term
debt
|
200
|
|
200
|
Accounts
payable
|
8,769
|
|
8,848
|
Other
current
liabilities
|
5,327
|
|
4.340
|
Total Current
Liabilities
|
20,812
|
|
20,240
|
Other
non-current
liabilities
|
12,411
|
|
12,238
|
Total
Liabilities
|
33,223
|
|
32,478
|
Noncontrolling
interest
|
2,132
|
|
2,147
|
Kewaunee
Scientific Corporation
equity
|
29,835
|
|
29,511
|
Total
Equity
|
31,967
|
|
31,658
|
Total
Liabilities and
Equity
|
$65,190
|
|
$64,136
|
Contact: D. Michael Parker
704/871-3290
SOURCE Kewaunee Scientific Corporation