STATESVILLE, N.C., March 3, 2015 /PRNewswire/ -- Kewaunee
Scientific Corporation (Nasdaq: KEQU) today reported sales and
earnings for its third quarter ended January
31, 2015.
Net earnings for the quarter were $484,000, or $0.18
per diluted share, as compared to net earnings of $604,000, or $0.22
per diluted share, in the third quarter last year. Earnings for the
quarter reflect lower domestic sales and an unfavorable product
mix, partially offset by increased international sales.
For the nine months ended January 31, 2015, net earnings
were $2,920,000, or $1.10 per diluted share, as compared to
$2,916,000, or $1.11 share, in the comparable period last
year.
Sales for the quarter were $27,754,000, an increase of 6.7% from sales of
$26,013,000 in the third quarter last
year. Domestic sales for the quarter were $20,025,000, a decline of 7.1% from sales of
$21,544,000 in the third quarter last
year. The domestic laboratory construction marketplace continued to
be challenging during the quarter, particularly for educational
laboratory construction projects, although increased bidding
opportunities were experienced in certain geographic areas of the
country as the overall economy continued its gradual improvement.
International sales were $7,729,000,
an increase of 73.0% from sales of $4,469,000 in the third quarter last year, as
sales benefited from shipments of several large international
orders received in earlier periods.
The order backlog was $78.0
million at January 31, 2015,
down from $84.5 million at
October 31, 2014, and up from $69.8
million at January 31,
2014.
Sales for the nine months ended January
31, 2015 were $88,546,000, an
increase of 5.3% from sales of $84,114,000 in the comparable period last year.
Domestic sales were $67,902,000, a
decrease of 3.9% from sales of $70,678,000 in the comparable period last
year. International sales were $20,644,000, an increase of 53.6% from sales of
$13,436,000 in the comparable period
last year.
Unrestricted cash on hand was $3.9
million at the end of the quarter, as compared to
$6.7 million at the end of the same
period last year. Short-term borrowings under the Company's bank
line of credit were $798,000, as
compared to $3.9 million at the end
of the same period last year, and long-term debt was $4.3 million, as compared to $4.7 million. The debt-to-equity ratio was
.14-to-1, as compared to .28-to-1 at the end of the same period
last year. Working capital was $27.4
million, as compared to $25.5
million at the end of the same period last year.
"Historically, the third quarter is our most challenging
quarter, and this was true again this year," commented David M. Rausch, Kewaunee's President and Chief
Executive Officer. "However, our overall corporate performance met
expectations. The continuing soft domestic educational laboratory
construction market impacted sales and profit margins for the
quarter. Additionally, our third quarter domestic business was
impacted by both the concentration of the number of holidays and
the weather conditions that affected construction project
schedules. I am pleased with the sales and earnings performance of
our International team, as several large international projects in
our backlog shipped during the quarter. In addition, we experienced
noticeable increases in orders and sales during this quarter from
our expanding sales representation in Latin America.
"Looking forward, we expect sales and earnings for the fourth
quarter to improve over the third quarter and be in line
with results for the fourth quarter last year. Our
outlook is based on scheduled ship dates for projects in our
current order backlog, our recent observation that opportunities
for educational laboratory construction projects have modestly
improved, and our expectations that our international business will
continue its progress."
About Kewaunee Scientific
Founded in 1906, Kewaunee
Scientific Corporation is a recognized global leader in the design,
manufacture, and installation of laboratory, healthcare, and
technical furniture products. Products include steel, wood, and
laminate casework, fume hoods, adaptable modular systems, moveable
workstations, stand-alone benches, biological safety cabinets, and
epoxy resin worksurfaces and sinks.
The Company's corporate headquarters are located in Statesville, North Carolina. Direct sales
offices are located in the United
States, India, Singapore, and China. Three manufacturing facilities are
located in Statesville serving the
domestic and international markets, and one manufacturing facility
is located in Bangalore, India
serving the local and Asian markets. The Company's China headquarters, sales office, and assembly
operation are located in Suzhou Industrial Park, China. 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. Additional
information concerning these 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,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net sales
|
|
|
$ 27,754
|
|
$ 26,013
|
|
$ 88,546
|
|
$ 84,114
|
Cost of products
sold
|
|
23,298
|
|
21,302
|
|
72,120
|
|
67,934
|
Gross
profit
|
|
|
4,456
|
|
4,711
|
|
16,426
|
|
16,180
|
Operating
expenses
|
|
3,872
|
|
3,773
|
|
12,170
|
|
11,676
|
Operating
earnings
|
|
584
|
|
938
|
|
4,256
|
|
4,504
|
Other
income
|
|
134
|
|
95
|
|
385
|
|
265
|
Interest
expense
|
|
(91)
|
|
(116)
|
|
(274)
|
|
(276)
|
Earnings before
income taxes
|
|
627
|
|
917
|
|
4,367
|
|
4,493
|
Income tax
expense
|
|
109
|
|
292
|
|
1,361
|
|
1,505
|
Net
earnings
|
|
|
518
|
|
625
|
|
3,006
|
|
2,988
|
Less: net earnings
attributable to
|
|
|
|
|
|
|
|
|
the noncontrolling interest
|
|
34
|
|
21
|
|
86
|
|
72
|
Net earnings
attributable to
|
|
|
|
|
|
|
|
|
Kewaunee Scientific Corporation
|
|
$
484
|
|
$ 604
|
|
$ 2,920
|
|
$ 2,916
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share attributable to
|
|
|
|
|
|
|
|
|
Kewaunee Scientific Corporation stockholders
|
|
|
|
|
|
|
Basic
|
|
|
$
0.18
|
|
$ 0.23
|
|
$
1.11
|
|
$ 1.12
|
Diluted
|
|
|
$
0.18
|
|
$ 0.22
|
|
$
1.10
|
|
$ 1.11
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common
|
|
|
|
|
|
|
|
|
shares
outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
|
2,628
|
|
2,615
|
|
2,625
|
|
2,606
|
Diluted
|
|
|
2,659
|
|
2,645
|
|
2,656
|
|
2,627
|
|
Kewaunee
Scientific Corporation
|
|
Condensed
Consolidated Balance Sheets
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January
31,
|
|
April 30,
|
|
|
|
|
|
2015
|
|
2014
|
Assets
|
|
|
|
|
(Unaudited)
|
|
|
Cash and cash
equivalents
|
|
|
|
$ 3,863
|
|
$ 6,248
|
Restricted
Cash
|
|
|
|
2,524
|
|
368
|
Receivables, less
allowances
|
|
|
|
25,062
|
|
23,473
|
Inventories
|
|
|
|
|
12,430
|
|
11,938
|
Prepaid expenses and
other current assets
|
|
|
|
1,703
|
|
1,326
|
Total Current Assets
|
|
|
|
45,582
|
|
43,353
|
Net property, plant
and equipment
|
|
|
|
14,805
|
|
14,570
|
Other
assets
|
|
|
|
|
5,063
|
|
4,794
|
Total
Assets
|
|
|
|
|
$ 65,450
|
|
$ 62,717
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
Short-term borrowings
and interest rate swap
|
|
|
|
$ 1,036
|
|
$ 3,150
|
Current portion of
long-term debt
|
|
|
|
421
|
|
421
|
Accounts
payable
|
|
|
|
12,093
|
|
8,542
|
Other current
liabilities
|
|
|
|
4,680
|
|
4,050
|
Total Current Liabilities
|
|
|
|
18,230
|
|
16,163
|
Other non-current
liabilities
|
|
|
|
11,028
|
|
12,330
|
Total Liabilities
|
|
|
|
29,258
|
|
28,493
|
Noncontrolling
interest
|
|
|
|
306
|
|
265
|
Kewaunee Scientific
Corporation equity
|
|
|
|
35,886
|
|
33,959
|
Total Equity
|
|
|
|
36,192
|
|
34,224
|
Total Liabilities and
Equity
|
|
|
|
$ 65,450
|
|
$ 62,717
|
|
|
Contact:
|
D. Michael
Parker
|
|
704/871-3290
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/kewaunee-scientific-reports-results-for-third-quarter-300045017.html
SOURCE Kewaunee Scientific Corporation