STATESVILLE, N.C., Feb. 28, 2017 /PRNewswire/ -- Kewaunee
Scientific Corporation (Nasdaq: KEQU) today reported results for
its third quarter of fiscal year 2017, ended January 31, 2017.
Sales for the quarter were $30,371,000, a decrease of 6.3% from sales of
$32,410,000 in the prior year.
Domestic sales for the quarter were $25,313,000, virtually unchanged compared to
sales of $25,423,000 in the third
quarter of last year. International sales for the quarter were
$5,058,000, down 27.6% from sales of
$6,987,000 in the third quarter last
year. Sales in the third quarter were impacted by a slowing of
near-term orders from our dealer and distribution channels along
with two large orders that were not shipped due to construction
delays.
Sales for the nine months ended January
31, 2017 were $103,979,000, an
increase of 10.0% from sales of $94,536,000 in the prior year. Domestic
sales for the nine months ended January 31,
2017 were $83,161,000, an
increase of 9.4% from sales of $76,017,000 in the prior year.
International sales for the nine months ended January 31, 2017 were $20,818,000, an increase of 12.4% from sales of
$18,519,000 in the prior year.
Net earnings for the third quarter were $341,000, or $0.13
per diluted share, a decrease of 58.9% as compared to net earnings
of $830,000, or $0.31 per diluted share, in the third quarter
last year. For the nine months ended January
31, 2017 net earnings increased 26.9% to $3,127,000, or $1.15 per diluted share, as compared to net
earnings of $2,465,000, or
$0.92 per diluted share, for the nine
months ended January 31, 2016.
The Company's order backlog is a new record for Kewaunee at
$106.9 million at January 31, 2017, as compared to $95.2 million at January
31, 2016.
The Company's balance sheet and financial condition remain
strong. Unrestricted cash on hand was $8.3
million at the end of the quarter, as compared to
$3.7 million at the end of the third
quarter last year. Working capital was $31.8
million, as compared to $29.5
million at the end of the third quarter last year.
Short-term debt and interest rate swaps were $4.7 million at the end of the quarter, as
compared to $5.5 million at the end
of the third quarter last year, and total bank borrowings and
interest rate swaps were $8.1
million, as compared to $9.4
million at the end of the third quarter last year.
"I am extremely pleased with our order backlog, which is a
record for Kewaunee, and a strong foundation for future quarters,"
said David M. Rausch, Kewaunee's
President and Chief Executive Officer. "We were awarded another
large $8.4M order in the third
quarter with City University of New
York, NYCCT New Academic Building. This award as well as the
$18.5M contract awarded in the second
quarter for the Kuwait University Sabah
Al-Salem University City at the College of Science continues to
affirm Kewaunee's leadership in the global laboratory
furniture and fume hood marketplace."
"Looking forward, our Associates are focused on delivering a
solid fourth quarter, and I am optimistic that the results for
the current fiscal year will finish 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.
Kewaunee
Scientific Corporation
|
Consolidated
Statements of Operations (Unaudited)
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
|
January
31,
|
|
January
31,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net sales
|
|
|
$
30,371
|
|
$
32,410
|
|
$
103,979
|
|
$
94,536
|
Cost of products
sold
|
|
25,339
|
|
26,922
|
|
84,704
|
|
77,673
|
Gross
profit
|
|
|
5,032
|
|
5,488
|
|
19,275
|
|
16,863
|
Operating
expenses
|
|
4,590
|
|
4,441
|
|
14,484
|
|
13,163
|
Operating
earnings
|
|
442
|
|
1,047
|
|
4,791
|
|
3,700
|
Other
income
|
|
120
|
|
109
|
|
358
|
|
296
|
Interest
expense
|
|
(71)
|
|
(83)
|
|
(229)
|
|
(236)
|
Earnings before
income taxes
|
|
491
|
|
1,073
|
|
4,920
|
|
3,760
|
Income tax
expense
|
|
133
|
|
225
|
|
1,695
|
|
1,242
|
Net
earnings
|
|
|
358
|
|
848
|
|
3,225
|
|
2,518
|
Less: net earnings
attributable to
|
|
|
|
|
|
|
|
|
the noncontrolling interest
|
|
17
|
|
18
|
|
98
|
|
53
|
Net earnings
attributable to
|
|
|
|
|
|
|
|
|
Kewaunee Scientific Corporation
|
|
$
341
|
|
$
830
|
|
$
3,127
|
|
$
2,465
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share attributable to
|
|
|
|
|
|
|
|
|
Kewaunee Scientific Corporation stockholders
|
|
|
|
|
|
|
Basic
|
|
|
$
0.13
|
|
$
0.31
|
|
$
1.16
|
|
$
0.93
|
Diluted
|
|
|
$
0.13
|
|
$
0.31
|
|
$
1.15
|
|
$
0.92
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common
|
|
|
|
|
|
|
|
|
shares
outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
|
2,711
|
|
2,682
|
|
2,703
|
|
2,661
|
Diluted
|
|
|
2,734
|
|
2,699
|
|
2,724
|
|
2,683
|
|
Kewaunee
Scientific Corporation
|
|
Condensed
Consolidated Balance Sheets
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January
31,
|
|
April 30,
|
|
|
|
|
|
2017
|
|
2016
|
Assets
|
|
|
|
|
(Unaudited)
|
|
|
Cash and cash
equivalents
|
|
|
|
$
8,254
|
|
$
5,222
|
Restricted
Cash
|
|
|
|
1,438
|
|
1,567
|
Receivables, less
allowances
|
|
|
|
25,787
|
|
27,835
|
Inventories
|
|
|
|
|
15,731
|
|
15,626
|
Prepaid expenses and
other current assets
|
|
|
|
1,004
|
|
707
|
Total Current Assets
|
|
|
|
52,214
|
|
50,957
|
Net property, plant
and equipment
|
|
|
|
14,348
|
|
14,118
|
Other
assets
|
|
|
|
|
7,083
|
|
7,330
|
Total
Assets
|
|
|
|
|
$
73,645
|
|
$
72,405
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
Short-term borrowings
and interest rate swaps
|
|
|
$
4,679
|
|
$
3,818
|
Current portion of
long-term debt
|
|
|
|
421
|
|
421
|
Accounts
payable
|
|
|
|
10,105
|
|
11,722
|
Other current
liabilities
|
|
|
|
5,180
|
|
4,989
|
Total Current Liabilities
|
|
|
|
20,385
|
|
20,950
|
Other non-current
liabilities
|
|
|
|
12,543
|
|
12,903
|
Total Liabilities
|
|
|
|
32,928
|
|
33,853
|
Noncontrolling
interest
|
|
|
|
399
|
|
310
|
Kewaunee Scientific
Corporation equity
|
|
|
|
40,318
|
|
38,242
|
Total Equity
|
|
|
|
40,717
|
|
38,552
|
Total Liabilities and
Equity
|
|
|
|
$
73,645
|
|
$
72,405
|
Contact:
|
Thomas D. Hull
III
|
|
(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-300415378.html
SOURCE Kewaunee Scientific Corporation