STATESVILLE, N.C., June 25, 2013 /PRNewswire/ -- Kewaunee
Scientific Corporation (NASDAQ: KEQU) today announced results for
its fourth quarter and year ended April 30,
2013.
Fiscal Year 2013 Results
Sales for the year were a record $117,121,000, up 13.9% from sales of $102,847,000 in the prior year. Net earnings for
the year were $3,044,000, or
$1.17 per diluted share, up from net
earnings of $1,031,000, or
$0.40 per diluted share, in the prior
year. Earnings for the year were favorably impacted by the increase
in sales, strong earnings from domestic operations, and reduced
manufacturing, overhead, and administrative costs.
Sales from domestic operations for the year were $93,519,000, up 11.4% from sales of $83,971,000 in the prior year. The marketplace
for private sector laboratory construction projects held up well
during the year, as increased activity for mid-sized projects more
than offset fewer large projects. The marketplace for publicly
funded wood educational projects continued to be well below
pre-recession levels, with fewer large project opportunities
available during the year. The Company continued to successfully
win projects and increase market share in most of its geographic
markets, although pricing remained very competitive.
Sales from international operations for the year were
$23,602,000, up 25.0% from sales of
$18,876,000 in the prior year. The
increase resulted as several large international orders from prior
periods were manufactured and shipped during the year. The Company
continues to have a strong backlog of international orders and to
see good opportunities for growth in its international markets.
The order backlog was $80.2
million at April 30, 2013, as
compared to $86.2 million at
April 30, 2012. The change in the
backlog reflects the manufacturing and shipping of a large
international order during the year, which was partially offset by
a small increase in the domestic order backlog.
Fourth Quarter Results
Sales for the fourth quarter were a record $31,803,000, up 9.7% from sales of $28,990,000 in the same period of the prior year.
Sales from domestic operations were $24,762,000, up 26.3% over sales of $19,607,000 in the prior year. Sales from
international operations were $7,041,000, a decline of 25.0% from sales of
$9,383,000 in the same period of the
prior year.
Net earnings for the quarter were $1,217,000, or $0.46 per diluted share, as compared to earnings
of $1,256,000, or $0.49 per diluted share, in the same period of
the prior year. Earnings for the quarter were favorably
impacted by the increase in sales, very strong earnings from
domestic operations, and reduced manufacturing, overhead, and
administrative costs. Sales and earnings from international
operations were below the same period last year, as the last year
period was boosted by the manufacturing and shipping of several
large international orders.
The Company's balance sheet and financial condition remain
strong. Cash on hand at the end of the year was $6.5 million and working capital was $25.1 million. Short term borrowings under
the Company's $15 million revolver
line of credit were $7.0 million and
term debt outstanding was $3.5
million. The debt-to-equity ratio at year end was
.33-to-1.
"Fiscal year 2013 was an excellent year," said William A. Shumaker, Kewaunee's Chief Executive
Officer. "I am pleased that we exceeded our sales and earnings
goals and made excellent progress against our goals to strengthen
the Kewaunee brand, strengthen relationships with existing
customers, build relationships with new and prospective customers,
reduce costs, and increase market share. The progress in all of
these areas not only resulted in record sales for the fourth
quarter and year, but it provides momentum as we enter the new
year.
"As I look forward to fiscal year 2014, I expect progress to
continue in all of the above areas. Although my retirement will
take me out of the day-to-day operations of the Company as of the
end of this month, I have the utmost confidence in the members of
the management team, each of whom has many years of valuable
experience in the laboratory furniture industry."
Kewaunee Scientific Corporation is a recognized global 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.
Kewaunee
Scientific Corporation
|
Consolidated
Statements of Operations
|
(in thousands,
except per share data)
|
|
|
Three months
ended
|
|
Years
ended
|
|
|
April
30,
|
|
April
30,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
(Unaudited)
|
|
|
|
|
Net sales
|
|
$
31,803
|
|
$
28,990
|
|
$
117,121
|
|
$ 102,847
|
Cost of products
sold
|
|
25,024
|
|
21,638
|
|
94,863
|
|
83,691
|
Gross
profit
|
|
6,779
|
|
7,352
|
|
22,258
|
|
19,156
|
Operating
expenses
|
|
4,776
|
|
4,493
|
|
16,981
|
|
16,443
|
Operating
earnings
|
|
2,003
|
|
2,859
|
|
5,277
|
|
2,713
|
Other
income
|
|
46
|
|
43
|
|
306
|
|
271
|
Interest
expense
|
|
(67)
|
|
(112)
|
|
(362)
|
|
(445)
|
Earnings before
income taxes
|
|
1,982
|
|
2,790
|
|
5,221
|
|
2,539
|
Income tax
expense
|
|
578
|
|
976
|
|
1,540
|
|
739
|
Net
earnings
|
|
1,404
|
|
1,814
|
|
3,681
|
|
1,800
|
Less: net earnings
attributable to
|
|
|
|
|
|
|
|
|
the noncontrolling interest
|
|
187
|
|
558
|
|
637
|
|
769
|
Net earnings
attributable to
Kewaunee Scientific
Corporation
|
|
$
1,217
|
|
$
1,256
|
|
$
3,044
|
|
$
1,031
|
|
|
|
|
|
|
|
|
|
Net earnings per
share attributable to
Kewaunee Scientific Corporation stockholders
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.47
|
|
$
0.49
|
|
$
1.18
|
|
$
0.40
|
Diluted
|
|
$
0.46
|
|
$
0.49
|
|
$
1.17
|
|
$
0.40
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common
|
|
|
|
|
|
|
|
|
shares
outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
2,591
|
|
2,579
|
|
2,587
|
|
2,579
|
Diluted
|
|
2,613
|
|
2,580
|
|
2,600
|
|
2,580
|
|
|
|
|
|
|
|
|
|
Kewaunee
Scientific Corporation
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
(in
thousands)
|
|
|
|
|
|
|
April
30,
|
|
April 30,
|
|
|
|
|
|
|
2013
|
|
2012
|
|
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
5,811
|
|
$
6,188
|
|
|
Restricted
Cash
|
|
691
|
|
704
|
|
|
Receivables, less
allowances
|
|
25,884
|
|
22,469
|
|
|
Inventories
|
|
13,203
|
|
11,760
|
|
|
Prepaid expenses and
other current assets
|
|
1,641
|
|
1,702
|
|
|
Total Current Assets
|
|
47,230
|
|
42,823
|
|
|
Net property, plant
and equipment
|
|
15,098
|
|
15,346
|
|
|
Other
assets
|
|
6,414
|
|
5,192
|
|
|
Total
Assets
|
|
$
68,742
|
|
$
63,361
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
Short-term
borrowings
|
|
$
6,997
|
|
$
6,816
|
|
|
Current obligations
under capital leases and long-term debt
|
|
200
|
|
236
|
|
|
Accounts
payable
|
|
10,406
|
|
8,848
|
|
|
Other current
liabilities
|
|
4,512
|
|
3,565
|
|
|
Total Current Liabilities
|
|
22,115
|
|
19,465
|
|
|
Other non-current
liabilities
|
|
12,934
|
|
12,238
|
|
|
Total Liabilities
|
|
35,049
|
|
31,703
|
|
|
Noncontrolling
interest
|
|
2,017
|
|
2,147
|
|
|
Kewaunee Scientific
Corporation equity
|
|
31,676
|
|
29,511
|
|
|
Total Equity
|
|
33,693
|
|
31,658
|
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
68,742
|
|
$
63,361
|
|
|
Contact:
|
D. Michael
Parker
|
|
704/871-3290
|
SOURCE Kewaunee Scientific Corporation