STATESVILLE, N.C., June 20, 2017 /PRNewswire/ -- Kewaunee
Scientific Corporation (NASDAQ: KEQU) today announced
results for its fourth quarter and its fiscal year ended
April 30, 2017.
Fourth Quarter 2017 Results:
- Sales of $34,579,000, an increase
of 1.4% from the prior year fourth quarter.
- Net earnings of $1,388,000, an
increase of 3.8% from the prior year fourth quarter.
- Diluted earnings per share of $0.51, an increase of 2.0% from the prior year
fourth quarter.
Full Year Fiscal 2017 Results:
- Record sales of $138,558,000, an
increase of 7.7% from the prior year.
- Record net earnings of $4,515,000, an increase of 18.8% from the prior
year.
- Diluted earnings per share of $1.66, an increase of 16.9% from the prior
year.
- Backlog grew to a record $113,520,000, an increase of 12.9% from the prior
year.
Fourth Quarter 2017 Commentary
Sales for the fourth
quarter were $34,579,000, up 1.4%
from sales of $34,090,000 in the same
period of the prior year. Net earnings for the quarter were
$1,388,000, or $0.51 per diluted share, compared to net earnings
of $1,337,000, or $0.50 per diluted share, in the same period of
the prior year.
Sales from domestic operations for the quarter were $29,920,000, up 10.7% from sales of $27,030,000 in the same period of the prior year
as project activity continues to increase across the markets
served. Sales from international operations were $4,659,000, down 34.0% from sales of $7,060,000 in the same period of the prior year
as construction delays impacted multiple customer orders within the
period.
"The strong results in the fourth quarter were varied, with
domestic operations delivering their strongest quarter of fiscal
year 2017 while international operations were significantly
impacted by a number of projects that were delayed, for various
reasons beyond our control, impacting our ability to deliver
product to job sites," said David M.
Rausch, Kewaunee's Chief Executive Officer.
Full Fiscal Year 2017 Commentary
Record sales of
$138,558,000 were delivered during
fiscal year 2017, an increase of 7.7% from sales of $128,626,000 in the prior year. Record net
earnings for the year were $4,515,000, or $1.66 per diluted share, up 16.9% from net
earnings of $3,802,000, or
$1.42 per diluted share, in the prior
year. Record sales were again generated due to the overall strength
of the laboratory furniture markets domestically, as well as in
India and the Middle East.
Sales from domestic operations for the year were $113,081,000, up 9.7% from sales of $103,047,000 in the prior year. Domestic sales
grew when compared to the prior year, driven by increased activity
across our dealer and distribution networks as well as with
end-users. International sales for fiscal year 2017 were
$25.5 million, relatively unchanged
from fiscal year 2016 sales of $25.6
million.
The order backlog was $113.5
million at April 30, 2017, a
record, up from $106.9 million at
January 31, 2017, and $100.5 million at April
30, 2016. Incoming orders continued to be strong in all of
our key markets, increasing the order backlog to record levels.
Unrestricted cash on hand at April 30,
2017 was $12,506,000, as
compared to $5,222,000 at
April 30, 2016, and working capital
was $32,885,000, as compared to
$30,007,000. Short term debt was
$4,509,000 at April 30, 2017, as compared to $4,239,000 at April 30,
2016, and long-term debt was $2,431,000 as compared to $3,349,000. The debt-to-equity ratio at
April 30, 2017 was .20-to-1,
unchanged from April 30, 2016.
"Fiscal year 2017 was another year of continued growth for
Kewaunee as we achieved record sales and net earnings," said
David M. Rausch. "The Kewaunee
Associates continue to focus on delivering world-class products to
our customers, and our success is a testament to their
dedication. The Company finished the year with another strong
backlog and continues to focus on productivity and efficiency
projects that I believe will continue to enhance the Company's
long-term success.
"Coming off three strong years, I continue to be optimistic
about Kewaunee's future and anticipate continued sales and earnings
growth in fiscal year 2018. The pace of activity, both domestically
and internationally, remains solid as customers continue to invest
in projects that require the products and services that we
provide."
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 and sales office are
located in Shanghai, 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:
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Thomas D. Hull
III
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704/871-3290
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Kewaunee
Scientific Corporation
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Consolidated
Statements of Operations
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|
|
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(in thousands,
except per share data)
|
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Three months
ended
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Years
ended
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April
30,
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April
30,
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2017
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2016
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2017
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2016
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(Unaudited)
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(Unaudited)
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Net sales
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$
34,579
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$
34,090
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$
138,558
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$ 128,626
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Cost of products
sold
|
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27,247
|
|
27,245
|
|
111,951
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|
104,918
|
Gross
profit
|
|
7,332
|
|
6,845
|
|
26,607
|
|
23,708
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Operating
expenses
|
|
5,581
|
|
4,847
|
|
20,065
|
|
18,010
|
Operating
earnings
|
|
1,751
|
|
1,998
|
|
6,542
|
|
5,698
|
Other
income
|
|
138
|
|
51
|
|
496
|
|
347
|
Interest
expense
|
|
(63)
|
|
(70)
|
|
(292)
|
|
(306)
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Earnings before
income taxes
|
|
1,826
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|
1,979
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|
6,746
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|
5,739
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Income tax
expense
|
|
431
|
|
620
|
|
2,126
|
|
1,862
|
Net
earnings
|
|
1,395
|
|
1,359
|
|
4,620
|
|
3,877
|
Less: net earnings
attributable to
|
|
|
|
|
|
|
|
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the noncontrolling interest
|
|
7
|
|
22
|
|
105
|
|
75
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Net earnings
attributable to
|
|
|
|
|
|
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Kewaunee Scientific Corporation
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$
1,388
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$
1,337
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$
4,515
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$
3,802
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|
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Net earnings per
share attributable to
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Kewaunee Scientific Corporation stockholders
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Basic
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$
0.51
|
|
$
0.50
|
|
$
1.67
|
|
$
1.43
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Diluted
|
|
$
0.51
|
|
$
0.50
|
|
$
1.66
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$
1.42
|
|
|
|
|
|
|
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Weighted average
number of common
|
|
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|
|
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shares
outstanding
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|
|
|
|
|
|
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Basic
|
|
2,712
|
|
2,685
|
|
2,705
|
|
2,667
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Diluted
|
|
2,734
|
|
2,699
|
|
2,726
|
|
2,687
|
|
|
|
|
|
|
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Kewaunee
Scientific Corporation
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Condensed
Consolidated Balance Sheets
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(in
thousands)
|
|
|
|
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April
30,
|
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April 30,
|
|
|
|
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2017
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2016
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Assets
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(Unaudited)
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|
|
|
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Cash and cash
equivalents
|
|
$
12,506
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|
$
5,222
|
|
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Restricted
Cash
|
|
1,435
|
|
1,567
|
|
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Receivables, less
allowances
|
|
29,889
|
|
27,835
|
|
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Inventories
|
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14,935
|
|
15,626
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|
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Prepaid expenses and
other current assets
|
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1,047
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|
707
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Total Current Assets
|
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59,812
|
|
50,957
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Property, plant and
equipment, net
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14,027
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14,118
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Other
assets
|
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6,558
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7,330
|
|
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Total
Assets
|
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$
80,397
|
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$
72,405
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|
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Liabilities and
Equity
|
|
|
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Short-term borrowings
and interest rate swaps
|
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$
3,591
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$
3,818
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Current portion of
long-term debt
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|
918
|
|
421
|
|
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Accounts
payable
|
|
11,995
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11,722
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Other current
liabilities
|
|
10,423
|
|
4,989
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|
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Total Current Liabilities
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26,927
|
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20,950
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Other non-current
liabilities
|
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9,333
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12,903
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Total Liabilities
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36,260
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33,853
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Noncontrolling
interest
|
|
374
|
|
310
|
|
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Kewaunee Scientific
Corporation equity
|
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43,763
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38,242
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Total Equity
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44,137
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38,552
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Total Liabilities and
Stockholders' Equity
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$
80,397
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$
72,405
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/kewaunee-scientific-reports-results-for-fourth-quarter-and-fiscal-year-300477121.html
SOURCE Kewaunee Scientific Corporation