STATESVILLE, N.C., Aug. 30, 2016 /PRNewswire/ -- Kewaunee
Scientific Corporation (Nasdaq: KEQU) today reported results for
its first quarter ended July 31,
2016.
Sales for the quarter were $37,279,000, a 20% increase from sales of
$31,089,000 in the prior year first
quarter. Domestic sales for the quarter were $29,637,000, up 22% from sales of $24,315,000 in the first quarter of last year.
International sales for the quarter were $7,642,000, up 13% from sales of $6,774,000 in the first quarter last year.
Net earnings for the quarter were up 38% at $1,300,000, or $0.48 per diluted share, as compared to net
earnings of $940,000, or $0.35 per diluted share, in the first quarter
last year.
Both Domestic and International sales were strong during the
quarter, as the Company successfully met the demands of the
marketplace for laboratory furniture and scientific equipment.
Domestically, both dealer sales and direct sales were strong across
all markets served by the Company. Internationally, the
Company benefited from a large order in the Middle East that was partially delivered in
the first quarter.
The order backlog was $86.2
million at July 31, 2016, as
compared to $86.7 million at
July 31, 2015, and $100.5 million at April
30, 2016. The Company is currently competing for a
number of large projects that, if won, would significantly
strengthen the current order backlog.
The Company's balance sheet and financial condition remain
strong. Unrestricted cash on hand was $6,711,000 at the end of the quarter, as compared
to $2,899,000 at the end of the first
quarter last year. Working capital was $30,815,000 as compared to $28,523,000 at the end of the first quarter last
year. Short-term debt and interest rate swaps were $6,958,000 at the end of the quarter, as compared
to $4,901,000 at the end of the first
quarter last year, and long-term debt was $3,665,000 as compared to $4,086,000 at the end of the first quarter last
year. The debt-to-equity ratio at July 31, 2016 was .27-to-1,
as compared to .25-to-1 at July 31,
2015.
"We had a very strong first quarter with our Domestic and
International businesses posting strong year-over-year sales
growth," said David M. Rausch,
Kewaunee's President and Chief Executive Officer. "We have grown
our sales and net earnings, continuing to operate at high levels
and benefiting from ongoing productivity improvements and cost
reduction programs.
"Looking forward, I remain optimistic that sales will continue
to increase in fiscal year 2017. I expect our earnings improvement
to be sustainable as our order backlog and opportunities in the
market remain strong."
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: Thomas D. Hull III
704/871-3290
Kewaunee
Scientific Corporation
|
Consolidated
Statements of Operations (Unaudited)
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
July
31,
|
|
|
2016
|
|
2015
|
Net sales
|
|
$
37,279
|
|
$
31,089
|
Cost of products
sold
|
|
30,140
|
|
25,246
|
Gross
profit
|
|
7,139
|
|
5,843
|
Operating
expenses
|
|
5,078
|
|
4,319
|
Operating
earnings
|
|
2,061
|
|
1,524
|
Other
income
|
|
119
|
|
102
|
Interest
expense
|
|
(80)
|
|
(92)
|
Earnings before
income taxes
|
|
2,100
|
|
1,534
|
Income tax
expense
|
|
770
|
|
571
|
Net
earnings
|
|
1,330
|
|
963
|
Less: net earnings
attributable to the noncontrolling interest
|
|
30
|
|
23
|
Net earnings
attributable to Kewaunee Scientific Corporation
|
|
$
1,300
|
|
$
940
|
|
|
|
|
|
Net earnings per
share attributable to
|
|
|
|
|
Kewaunee Scientific Corporation stockholders
|
|
|
|
|
Basic
|
|
$0.48
|
|
$0.36
|
Diluted
|
|
$0.48
|
|
$0.35
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
|
|
|
|
Basic
|
|
2,693
|
|
2,630
|
Diluted
|
|
2,707
|
|
2,659
|
|
|
|
|
|
|
|
|
|
|
Kewaunee
Scientific Corporation
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
|
|
|
|
|
|
|
July
31,
|
|
April 30,
|
|
|
2016
|
|
2016
|
Assets
|
|
(Unaudited)
|
|
|
Cash and cash
equivalents
|
|
$
6,711
|
|
$
5,222
|
Restricted
Cash
|
|
1,626
|
|
1,567
|
Receivables, less
allowances
|
|
30,517
|
|
27,835
|
Inventories
|
|
16,785
|
|
15,626
|
Prepaid expenses and
other current assets
|
|
1,287
|
|
707
|
Total Current Assets
|
|
56,926
|
|
50,957
|
Net property, plant
and equipment
|
|
14,527
|
|
14,118
|
Other
assets
|
|
6,955
|
|
7,330
|
Total
Assets
|
|
$
78,408
|
|
$
72,405
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
Short-term borrowings
and interest rate swaps
|
|
$
6,958
|
|
$
3,818
|
Current portion of
long-term debt
|
|
421
|
|
421
|
Accounts
payable
|
|
13,821
|
|
11,722
|
Other current
liabilities
|
|
4,911
|
|
4,989
|
Total Current Liabilities
|
|
26,111
|
|
20,950
|
Other non-current
liabilities
|
|
12,638
|
|
12,903
|
Total Liabilities
|
|
38,749
|
|
33,853
|
Noncontrolling
interest
|
|
339
|
|
310
|
Kewaunee Scientific
Corporation stockholders' equity
|
|
39,320
|
|
38,242
|
Total Equity
|
|
39,659
|
|
38,552
|
Total Liabilities and
Stockholders' Equity
|
|
$
78,408
|
|
$
72,405
|
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SOURCE Kewaunee Scientific Corporation