STATESVILLE, N.C., Aug. 29, 2017 /PRNewswire/ -- Kewaunee Scientific
Corporation (NASDAQ: KEQU) today reported results for its first
quarter ended July 31, 2017.
Sales for the quarter were $33,881,000, a decrease of 9% from sales of
$37,279,000 in the prior year first
quarter. Net earnings for the quarter were $1,148,000, down 12% or $0.42 per diluted share, as compared to net
earnings of $1,300,000, or
$0.48 per diluted share, in the first
quarter last year.
Sales were down $3.4 million in
the first quarter due to timing of customer demand, while the
Company's order backlog grew $25
million. As a result, the order backlog increased 29% to
$111.2 million as of July 31, 2017, as compared to $86.2 million as of July
31, 2016.
The Company continues to increase its manufacturing capacity to
satisfy the increase in customer demand. At the same time, the
Company's gross margins are benefiting from the continued execution
of its cost and productivity programs.
The Company's balance sheet and financial condition remain
strong. Unrestricted cash on hand was $12,021,000 at the end of the quarter, including
a large customer advance payment, as compared to $6,711,000 at the end of the first quarter last
year. Working capital was $34,071,000
as compared to $30,815,000 at the end
of the first quarter last year. Short-term debt and interest rate
swaps were $3,539,000 at the end of
the quarter, as compared to $6,958,000 at the end of the first quarter last
year, and long-term debt was $2,139,000 as compared to $3,244,000 at the end of the first quarter last
year. The debt-to-equity ratio at July 31, 2017 was .15-to-1,
as compared to .27-to-1 at July 31,
2016.
"During the first quarter we continued to close major orders in
the marketplace due to our reputation for quality and service as
evidenced by the significant increase of our order backlog. Looking
forward, the Company is competing for a number of large projects
that will continue to strengthen the order backlog as they are
awarded," said David M. Rausch,
Kewaunee's President and Chief Executive Officer. "Customers turn
to Kewaunee in recognition of our ability to deliver large complex
projects on a global scale. I remain optimistic that fiscal year
2018 will result in increased 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 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 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: 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,
|
|
|
2017
|
|
2016
|
Net sales
|
|
$
33,881
|
|
$
37,279
|
Cost of products
sold
|
|
27,060
|
|
30,140
|
Gross
profit
|
|
6,821
|
|
7,139
|
Operating
expenses
|
|
5,133
|
|
5,078
|
Operating
earnings
|
|
1,688
|
|
2,061
|
Other
income
|
|
168
|
|
119
|
Interest
expense
|
|
(59)
|
|
(80)
|
Earnings before
income taxes
|
|
1,797
|
|
2,100
|
Income tax
expense
|
|
605
|
|
770
|
Net
earnings
|
|
1,192
|
|
1,330
|
Less: net earnings
attributable to the noncontrolling interest
|
|
44
|
|
30
|
Net earnings
attributable to Kewaunee Scientific Corporation
|
|
$
1,148
|
|
$
1,300
|
|
|
|
|
|
Net earnings per
share attributable to
|
|
|
|
|
Kewaunee Scientific Corporation stockholders
|
|
|
|
|
Basic
|
|
$0.42
|
|
$0.48
|
Diluted
|
|
$0.42
|
|
$0.48
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
|
|
|
|
Basic
|
|
2,712
|
|
2,693
|
Diluted
|
|
2,755
|
|
2,707
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kewaunee
Scientific Corporation
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
|
|
|
|
|
|
|
July
31,
|
|
April 30,
|
|
|
2017
|
|
2017
|
Assets
|
|
(Unaudited)
|
|
|
Cash and cash
equivalents
|
|
$
12,021
|
|
$
12,506
|
Restricted
Cash
|
|
1,471
|
|
1,435
|
Receivables, less
allowances
|
|
23,635
|
|
29,889
|
Inventories
|
|
17,001
|
|
14,935
|
Prepaid expenses and
other current assets
|
|
1,556
|
|
1,047
|
Total Current Assets
|
|
55,684
|
|
59,812
|
Net property, plant
and equipment
|
|
13,776
|
|
14,027
|
Other
assets
|
|
7,104
|
|
7,077
|
Total
Assets
|
|
$
76,564
|
|
$
80,916
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
Short-term borrowings
and interest rate swaps
|
|
$
3,539
|
|
$
3,591
|
Current portion of
long-term debt
|
|
1,105
|
|
918
|
Accounts
payable
|
|
11,933
|
|
11,995
|
Other current
liabilities
|
|
5,036
|
|
10,423
|
Total Current Liabilities
|
|
21,613
|
|
26,927
|
Other non-current
liabilities
|
|
10,764
|
|
10,732
|
Total Liabilities
|
|
32,377
|
|
37,659
|
Noncontrolling
interest
|
|
418
|
|
374
|
Kewaunee Scientific
Corporation stockholders' equity
|
|
43,769
|
|
42,883
|
Total Equity
|
|
44,187
|
|
43,257
|
Total Liabilities and
Stockholders' Equity
|
|
$
76,564
|
|
$
80,916
|
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SOURCE Kewaunee Scientific Corporation