STATESVILLE, N.C., March 4, 2014 /PRNewswire/ -- Kewaunee
Scientific Corporation (Nasdaq: KEQU) today reported sales and
earnings for its third quarter ended January
31, 2014.
Net earnings for the quarter were $604,000, or $0.22
per diluted share, as compared to net earnings of $544,000, or $0.21
per diluted share, in the third quarter last year. Earnings for the
quarter benefited from lower operating costs.
Sales for the quarter were $26,013,000, a decline of 5% from sales of
$27,450,000 in the third quarter last
year. Domestic sales were $21,544,000, up 5% from sales of $20,445,000 in the third quarter last year. Sales
for the quarter benefited from the shipment of several large
domestic orders received by the Company in earlier periods. The
domestic laboratory construction marketplace continued to be
challenging during the quarter, as fewer project opportunities were
available of all sizes, public and private. International sales
were $4,469,000, a decline of 36%
from unusually strong sales of $7,005,000 in the third quarter last year.
However, incoming international orders were well above the third
quarter last year, as the Company successfully took advantage of a
growing number of project opportunities in Asia and the Middle
East.
The order backlog was $69.8
million at January 31, 2014,
up slightly from $69.5 million at
October 31, 2013, and down from
$84.5 million at January 31, 2013. International orders in the
backlog increased during the quarter, offsetting a decline in
domestic orders. The order backlog is expected to increase in the
fourth quarter of the current fiscal year, as the Company was
recently notified of a large international contract award.
Net earnings for the nine months ended January 31, 2014
were $2,916,000, or $1.11 per diluted share, as compared to net
earnings of $1,827,000, or
$0.71 per diluted share, in the
comparable period last year. Earnings in the current year benefited
from a favorable product mix and lower operating costs.
Sales for the nine months ended January
31, 2014 were $84,114,000, a
decline of 1% from sales of $85,318,000 in the comparable period last year.
Domestic sales for the nine months ended January 31, 2014 were $70,678,000, an increase of 3% from sales of
$68,757,000 in the comparable period
last year. International sales were $13,436,000, a decline of 19% from sales of
$16,561,000 in the comparable period
last year.
Cash on hand was $7.3 million at
the end of the quarter, as compared to $4.9
million at the end of the same period last year. Short-term
borrowings under the Company's bank line of credit were
$3.9 million, as compared to
$2.4 million at the end of the same
period last year, and long-term debt was $4.7 million, as compared to $3.5 million. The debt-to-equity ratio was
.28-to-1, as compared to .20-to-1 at the end of the same period
last year. Working capital was $25.5
million, as compared to $24.3
million at the end of the same period last year.
"We continued to make excellent progress during the quarter,"
said David M. Rausch, Kewaunee's
Chief Executive Officer. "I am pleased with sales and earnings,
particularly since the third quarter is historically our slowest
due to normal construction cycles and the large number of holidays.
Also, we continued to make good progress in the quarter 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.
"Our Associates in Statesville
did an excellent job controlling manufacturing and operating costs
during the quarter. These lower costs are allowing us to continue
to be very competitive in the domestic marketplace where fewer new
projects available have intensified pressure on project selling
prices. Our international team also made excellent progress during
the quarter in winning projects, expanding and strengthening the
Kewaunee sales organization, and strengthening the Kewaunee brand
name globally.
"Looking forward, we expect that the financial results for the
fourth quarter will likely be in line with, or slightly better
than, the past two quarters."
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, 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.
This press release contains statements that the Company
believes to be "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. All
statements other than statements of historical fact included in
this press release, including statements regarding the Company's
future financial condition, results of operations, business
operations and business prospects, are forward-looking statements.
Words such as "anticipate," "estimate," "expect," "project,"
"intend," "plan," "predict," "believe" and similar words,
expressions and variations of these words and expressions are
intended to identify forward-looking statements. All
forward-looking statements are subject to important factors, risks,
uncertainties and assumptions, including industry and economic
conditions that could cause actual results to differ materially
from those described in the forward-looking statements. Such
factors, risks, uncertainties and assumptions include, but are not
limited to, competitive and general economic conditions,
both domestically and internationally; changes in customer demands;
dependence on customers' required delivery schedules; risks
related to fluctuations in the Company's operating results from
quarter to quarter; risks related to international operations,
including foreign currency fluctuations; changes in the
legal and regulatory environment; changes in raw materials and
commodity costs; and acts of terrorism, war, governmental action,
natural disasters and other Force Majeure events. Additional
information concerning these and other factors is contained in the
Company's filings with the Securities and Exchange Commission.
These forward-looking statements speak only as of the date of this
document. The Company assumes no obligation, and expressly
disclaims any obligation, to update any forward-looking statements,
whether as a result of new information, future events or
otherwise.
Kewaunee
Scientific Corporation
|
Consolidated
Statements of Operations (Unaudited)
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
|
January
31,
|
|
January
31,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Net sales
|
|
|
$
26,013
|
|
$
27,450
|
|
$
84,114
|
|
$
85,318
|
Cost of products
sold
|
|
21,302
|
|
22,441
|
|
67,934
|
|
69,839
|
Gross
profit
|
|
|
4,711
|
|
5,009
|
|
16,180
|
|
15,479
|
Operating
expenses
|
|
3,773
|
|
4,054
|
|
11,676
|
|
12,205
|
Operating
earnings
|
|
938
|
|
955
|
|
4,504
|
|
3,274
|
Other
income
|
|
95
|
|
84
|
|
265
|
|
260
|
Interest
expense
|
|
(116)
|
|
(80)
|
|
(276)
|
|
(295)
|
Earnings before
income taxes
|
|
917
|
|
959
|
|
4,493
|
|
3,239
|
Income tax
expense
|
|
292
|
|
177
|
|
1,505
|
|
962
|
Net
earnings
|
|
|
625
|
|
782
|
|
2,988
|
|
2,277
|
Less: net earnings
attributable to
|
|
|
|
|
|
|
|
|
the noncontrolling interest
|
|
21
|
|
238
|
|
72
|
|
450
|
Net earnings
attributable to
|
|
|
|
|
|
|
|
|
Kewaunee Scientific Corporation
|
|
$
604
|
|
$
544
|
|
$
2,916
|
|
$
1,827
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share attributable to
|
|
|
|
|
|
|
|
|
Kewaunee Scientific Corporation stockholders
|
|
|
|
|
|
|
Basic
|
|
|
$
0.23
|
|
$
0.21
|
|
$
1.12
|
|
$
0.71
|
Diluted
|
|
|
$
0.22
|
|
$
0.21
|
|
$
1.11
|
|
$
0.71
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common
|
|
|
|
|
|
|
|
|
shares
outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
|
2,615
|
|
2,590
|
|
2,606
|
|
2,586
|
Diluted
|
|
|
2,645
|
|
2,604
|
|
2,627
|
|
2,596
|
Kewaunee
Scientific Corporation
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January
31,
|
|
April 30,
|
|
|
|
|
|
2014
|
|
2013
|
Assets
|
|
|
|
|
(Unaudited)
|
|
|
Cash and cash
equivalents
|
|
|
|
$
6,658
|
|
$
5,811
|
Restricted
Cash
|
|
|
|
677
|
|
691
|
Receivables, less
allowances
|
|
|
|
21,970
|
|
25,884
|
Inventories
|
|
|
|
|
12,507
|
|
13,203
|
Prepaid expenses and
other current assets
|
|
|
|
1,611
|
|
1,641
|
Total Current Assets
|
|
|
|
43,423
|
|
47,230
|
Net property, plant
and equipment
|
|
|
|
14,866
|
|
15,098
|
Other
assets
|
|
|
|
|
6,674
|
|
6,414
|
Total
Assets
|
|
|
|
|
$
64,963
|
|
$
68,742
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
Short-term borrowings
and interest rate swap
|
|
|
|
$
4,169
|
|
$
6,997
|
Current portion of
long-term debt
|
|
|
|
421
|
|
200
|
Accounts
payable
|
|
|
|
8,926
|
|
10,406
|
Other current
liabilities
|
|
|
|
4,435
|
|
4,512
|
Total Current Liabilities
|
|
|
|
17,951
|
|
22,115
|
Other non-current
liabilities
|
|
|
|
15,159
|
|
12,934
|
Total Liabilities
|
|
|
|
33,110
|
|
35,049
|
Noncontrolling
interest
|
|
|
|
220
|
|
2,017
|
Kewaunee Scientific
Corporation equity
|
|
|
|
31,633
|
|
31,676
|
Total Equity
|
|
|
|
31,853
|
|
33,693
|
Total Liabilities and
Equity
|
|
|
|
$
64,963
|
|
$
68,742
|
Contact:
|
D. Michael
Parker
|
|
704/871-3290
|
SOURCE Kewaunee Scientific Corporation