STATESVILLE, N.C., March 1, 2016 /PRNewswire/ -- Kewaunee Scientific
Corporation (Nasdaq: KEQU) today reported results for its third
quarter ended January 31, 2016.
Sales for the quarter were $32,410,000, a 17% increase from sales of
$27,754,000 in the prior year.
Domestic sales for the quarter were $25,423,000, up 27% from sales of $20,025,000 in the third quarter of last year.
International sales for the quarter were $6,987,000, down 10% from sales of $7,729,000 in the third quarter last year.
Net earnings for the quarter were $830,000, or $0.31
per diluted share, as compared to net earnings of $484,000, or $0.18
per diluted share, in the third quarter last year. Sales and
earnings for the quarter were higher in comparison to the prior
year period as the opportunities within the domestic market were
stronger than is typical for our third quarter. International
sales were down on a year-over-year basis due to the timing of a
large order shipped during the third quarter of last year that did
not repeat.
The Company's order backlog was $95.2
million at January 31, 2016 as
compared to $78.0 million at
January 31, 2015, and $92.4 million at October
31, 2015. Incoming orders for the Domestic business
were strong during the quarter due to increased opportunities for
laboratory furniture and scientific equipment; however, sales of
education related products remained soft as many state and local
governments continue to struggle financially. The
International backlog also strengthened as the International team
secured a number of new orders across all of our key International
markets.
The Company's balance sheet and financial condition remain
strong. Unrestricted cash on hand was $3,709,000 at the end of the quarter, as compared
to $3,863,000 at the end of the third
quarter last year. Working capital was $29,541,000 as compared to $27,352,000 at the end of the third quarter last
year. Short-term debt and interest rate swaps were $5,538,000 at the end of the quarter, as compared
to $1,036,000 at the end of the third
quarter last year, and long-term debt was $3,455,000 as compared to $3,876,000.
"Historically, the third quarter is often Kewaunee's weakest;
however, during the third quarter of fiscal year 2016, we were able
to deliver strong year-over-year top line and earnings performance,
improved margins, and continued growth of our backlog," said
David M. Rausch, Kewaunee's
President and Chief Executive Officer. "We are seeing
continued strength from the laboratory furniture and casework
marketplace as our customers continue to both invest in new
facilities and upgrade existing facilities."
"Looking forward, we are focused on exceeding our customers'
expectations as we continue to respond to market opportunities
globally. We expect both the domestic and international
laboratory casework marketplace will continue to be strong with
improved demand for both new construction and renovation
projects. We anticipate a strong fourth quarter in both sales
and earnings."
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,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net sales
|
|
|
$ 32,410
|
|
$ 27,754
|
|
$ 94,536
|
|
$ 88,546
|
Cost of products
sold
|
|
26,922
|
|
23,298
|
|
77,673
|
|
72,120
|
Gross
profit
|
|
|
5,488
|
|
4,456
|
|
16,863
|
|
16,426
|
Operating
expenses
|
|
4,441
|
|
3,872
|
|
13,163
|
|
12,170
|
Operating
earnings
|
|
1,047
|
|
584
|
|
3,700
|
|
4,256
|
Other
income
|
|
109
|
|
134
|
|
296
|
|
385
|
Interest
expense
|
|
(83)
|
|
(91)
|
|
(236)
|
|
(274)
|
Earnings before
income taxes
|
|
1,073
|
|
627
|
|
3,760
|
|
4,367
|
Income tax
expense
|
|
225
|
|
109
|
|
1,242
|
|
1,361
|
Net
earnings
|
|
|
848
|
|
518
|
|
2,518
|
|
3,006
|
Less: net earnings
attributable to
|
|
|
|
|
|
|
|
|
the noncontrolling interest
|
|
18
|
|
34
|
|
53
|
|
86
|
Net earnings
attributable to
|
|
|
|
|
|
|
|
|
Kewaunee Scientific Corporation
|
|
$
830
|
|
$ 484
|
|
$ 2,465
|
|
$ 2,920
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share attributable to
|
|
|
|
|
|
|
|
|
Kewaunee Scientific Corporation stockholders
|
|
|
|
|
|
|
Basic
|
|
|
$
0.31
|
|
$ 0.18
|
|
$
0.93
|
|
$ 1.11
|
Diluted
|
|
|
$
0.31
|
|
$ 0.18
|
|
$
0.92
|
|
$ 1.10
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common
|
|
|
|
|
|
|
|
|
shares
outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
|
2,682
|
|
2,628
|
|
2,661
|
|
2,625
|
Diluted
|
|
|
2,699
|
|
2,659
|
|
2,683
|
|
2,656
|
|
|
|
|
|
|
|
|
|
|
Kewaunee
Scientific Corporation
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January
31,
|
|
April 30,
|
|
|
|
|
|
2016
|
|
2015
|
Assets
|
|
|
|
|
(Unaudited)
|
|
|
Cash and cash
equivalents
|
|
|
|
$ 3,709
|
|
$ 3,044
|
Restricted
Cash
|
|
|
|
1,444
|
|
2,276
|
Receivables, less
allowances
|
|
|
|
29,409
|
|
29,106
|
Inventories
|
|
|
|
|
16,154
|
|
12,745
|
Prepaid expenses and
other current assets
|
|
|
|
1,705
|
|
1,591
|
Total Current Assets
|
|
|
|
52,421
|
|
48,762
|
Net property, plant
and equipment
|
|
|
|
14,381
|
|
14,523
|
Other
assets
|
|
|
|
|
6,037
|
|
6,205
|
Total
Assets
|
|
|
|
|
$ 72,839
|
|
$ 69,490
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
Short-term borrowings
and interest rate swaps
|
|
|
$ 5,538
|
|
$ 4,955
|
Current portion of
long-term debt
|
|
|
|
421
|
|
421
|
Accounts
payable
|
|
|
|
12,215
|
|
11,232
|
Other current
liabilities
|
|
|
|
4,706
|
|
4,447
|
Total Current Liabilities
|
|
|
|
22,880
|
|
21,055
|
Other non-current
liabilities
|
|
|
|
13,167
|
|
13,236
|
Total Liabilities
|
|
|
|
36,047
|
|
34,291
|
Noncontrolling
interest
|
|
|
|
282
|
|
323
|
Kewaunee Scientific
Corporation equity
|
|
|
|
36,510
|
|
34,876
|
Total Equity
|
|
|
|
36,792
|
|
35,199
|
Total Liabilities and
Equity
|
|
|
|
$ 72,839
|
|
$ 69,490
|
Contact:
|
Thomas D. Hull
III
|
|
(704)
871-3290
|
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SOURCE Kewaunee Scientific Corporation