STATESVILLE, N.C., Aug. 25, 2015 /PRNewswire/ -- Kewaunee
Scientific Corporation (Nasdaq: KEQU) today reported results for
its first quarter ended July 31,
2015.
Sales for the quarter were $31,089,000, a 2% increase from sales of
$30,534,000 in the prior year.
Domestic sales for the quarter were $24,315,000, up slightly from sales of
$24,248,000 in the first quarter of
last year. International sales for the quarter were $6,774,000, up 8% from sales of $6,286,000 in the first quarter last year.
Net earnings for the quarter were $940,000, or $0.35
per diluted share, as compared to net earnings of $1,234,000, or $0.47 per diluted share, in the first quarter
last year. Earnings for the quarter were unfavorably impacted by
the shipments of the remaining orders in the backlog that were bid
in the prior year at extremely competitive pricing. This impact was
due to a major competitor exiting the marketplace, and to a lesser
extent, by a higher effective income tax rate.
In-coming orders for the Domestic business were strong during
the quarter, as opportunities increased from the improving
marketplace for laboratory furniture and scientific equipment in
the United States. The Company
continues to see and pursue new opportunities in the International
markets, particularly in the growth markets of India and the Middle
East, although the timing of international incoming orders
continues its unevenness from quarter-to-quarter.
The order backlog was $86.7
million at July 31, 2015, as
compared to $82.7 million at
July 31, 2014, and $90.1 million at April 30,
2015. An increase in the Domestic backlog was offset by
shipments of several large international orders during the
quarter.
The Company's balance sheet and financial condition remain
strong. Unrestricted cash on hand was $2.9
million at the end of the quarter, as compared to
$4.4 million at the end of the first
quarter last year. Cash of $888,000
was used during the current quarter for the final annual
installment toward the purchase of the minority interest in one of
the Company's Asia subsidiaries.
Working capital was $28.5 million, as
compared to $27.5 million at the end
of the first quarter last year. Short-term debt and interest rate
swaps were $4.9 million at the end of
the quarter, as compared to $5.2
million at the end of the first quarter last year, and total
bank borrowings and interest rate swaps were $9.0 million, as compared to $9.7 million at the end of the first quarter last
year.
"In our Domestic business, incoming orders continued to be
strong during the quarter, and profit margins improved over those
of the past two quarters," said David M.
Rausch, Kewaunee's President and Chief Executive Officer.
"Our International business continues to see project opportunities
globally from our expanded sales organization and the continued
strengthening of the Kewaunee brand worldwide.
"Looking forward, I remain optimistic we will continue to
experience sales growth in fiscal year 2016. I also expect earnings
to improve this fiscal year as the United
States economy continues its recovery and the marketplace
adjusts to the impact of the former competitor leaving the
industry. My optimism is also based on our strong order backlog and
expectations that our International business will continue its
long-term 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 is 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.
Contact: D. Michael Parker
704/871-3290
Kewaunee
Scientific Corporation
|
Consolidated
Statements of Operations (Unaudited)
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
July
31,
|
|
|
2015
|
|
2014
|
Net sales
|
|
$ 31,089
|
|
$ 30,534
|
Cost of products
sold
|
|
25,246
|
|
24,386
|
Gross
profit
|
|
5,843
|
|
6,148
|
Operating
expenses
|
|
4,319
|
|
4,348
|
Operating
earnings
|
|
1,524
|
|
1,800
|
Other
income
|
|
102
|
|
126
|
Interest
expense
|
|
(92)
|
|
(81)
|
Earnings before
income taxes
|
|
1,534
|
|
1,845
|
Income tax
expense
|
|
571
|
|
585
|
Net
earnings
|
|
963
|
|
1,260
|
Less: net earnings
attributable to the noncontrolling interest
|
|
23
|
|
26
|
Net earnings
attributable to Kewaunee Scientific Corporation
|
|
$
940
|
|
$ 1,234
|
|
|
|
|
|
Net earnings per
share attributable to
|
|
|
|
|
Kewaunee Scientific Corporation stockholders
|
|
|
|
|
Basic
|
|
$0.36
|
|
$0.47
|
Diluted
|
|
$0.35
|
|
$0.47
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
|
|
|
|
Basic
|
|
2,630
|
|
2,620
|
Diluted
|
|
2,659
|
|
2,651
|
|
|
|
|
|
|
|
|
|
|
Kewaunee
Scientific Corporation
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
|
|
|
|
|
|
|
July
31,
|
|
April 30,
|
|
|
2015
|
|
2015
|
Assets
|
|
(Unaudited)
|
|
|
Cash and cash
equivalents
|
|
$ 2,899
|
|
$ 3,044
|
Restricted
Cash
|
|
1,964
|
|
2,276
|
Receivables, less
allowances
|
|
28,117
|
|
29,106
|
Inventories
|
|
13,970
|
|
12,745
|
Prepaid expenses and
other current assets
|
|
2,521
|
|
1,591
|
Total Current Assets
|
|
49,471
|
|
48,762
|
Net property, plant
and equipment
|
|
14,374
|
|
14,523
|
Other
assets
|
|
6,231
|
|
6,205
|
Total
Assets
|
|
$ 70,076
|
|
$ 69,490
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
Short-term borrowings
and interest rate swaps
|
|
$ 4,901
|
|
$ 4,955
|
Current portion of
long-term debt
|
|
421
|
|
421
|
Accounts
payable
|
|
11,760
|
|
11,232
|
Other current
liabilities
|
|
3,866
|
|
4,447
|
Total Current Liabilities
|
|
20,948
|
|
21,055
|
Other non-current
liabilities
|
|
13,320
|
|
13,236
|
Total Liabilities
|
|
34,268
|
|
34,291
|
Noncontrolling
interest
|
|
268
|
|
323
|
Kewaunee Scientific
Corporation stockholders' equity
|
|
35,540
|
|
34,876
|
Total Equity
|
|
35,808
|
|
35,199
|
Total Liabilities and
Stockholders's Equity
|
|
$ 70,076
|
|
$ 69,490
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/kewaunee-scientific-reports-results-for-first-quarter-300133243.html
SOURCE Kewaunee Scientific Corporation