STATESVILLE, N.C., Dec. 5, 2017 /PRNewswire/ -- Kewaunee
Scientific Corporation (NASDAQ: KEQU) today reported results for
its second quarter of fiscal year 2018, ended October 31, 2017.
Net earnings for the quarter increased 16.0% to $1,724,000, or $0.62 per diluted share, as compared to net
earnings of $1,486,000, or
$0.54 per diluted share, in the
second quarter last year.
Sales for the quarter were $41,471,000, a 14.2% increase from sales of
$36,329,000 in the prior year.
Domestic sales for the quarter were $28,540,000, up 1.2% from sales of $28,211,000 in the second quarter of last year.
International sales for the quarter were $12,931,000, up 59.3% from sales of $8,118,000 in the second quarter last year.
The increase in sales was the result of strength in the
Company's International segment as the Company delivered a large
order in the Middle East. This order is the largest single
order in the Company's history and is being delivered, based on the
Company's global manufacturing capabilities and reach.
Domestic sales levels were similar to the prior year as dealer and
distributor demand for the Company's products continues at record
setting levels.
Kewaunee continues to win orders globally, with the Company's
order backlog at $118.0 million at
October 31, 2017, as compared to
$101.1 million at October 31, 2016, and $113.5 million at April
30, 2017. This level of order backlog is a new record
for Kewaunee.
The Company's balance sheet and financial condition remain
strong. Unrestricted cash on hand was $11.8
million at the end of the quarter, as compared to
$7.6 million at the end of the second
quarter last year. Working capital was $34.2
million, as compared to $31.4
million at the end of the second quarter last year.
Short-term debt and interest rate swaps were $7.7 million at the end of the quarter, as
compared to $6.7 million at the end
of the second quarter last year, and long-term debt was
$1.8 million as compared to
$3.1 million at the end of the second
quarter last year. The debt-to-equity ratio at October 31,
2017 was .24-to-1, as compared to .25-to-1 at October 31, 2016.
"We had a solid second quarter and continue to secure new orders
in the marketplace as evidenced by the strong growth in our order
backlog. This is very encouraging as our quarterly sales
performance was higher than the second quarter of the prior
year. We remain focused on exceeding our customers'
expectations as they continue to invest in projects that require
the quality products and services we provide," said David M. Rausch, Kewaunee's President and Chief
Executive Officer.
"Looking forward, our third quarter is typically our most
challenging; however, we have a strong order backlog for the
quarter and the remainder of the year. We have
successfully increased our manufacturing capacity in
anticipation of this demand and expect sales and earnings growth to
continue through the balance of the
fiscal year."
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.
Kewaunee
Scientific Corporation
|
Consolidated
Statements of Operations (Unaudited)
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
October
31,
|
|
October
31,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net sales
|
|
|
$
41,471
|
|
$
36,329
|
|
$
75,352
|
|
$
73,608
|
Cost of products
sold
|
|
33,560
|
|
29,225
|
|
60,620
|
|
59,365
|
Gross
profit
|
|
|
7,911
|
|
7,104
|
|
14,732
|
|
14,243
|
Operating
expenses
|
|
5,256
|
|
4,816
|
|
10,389
|
|
9,894
|
Operating
earnings
|
|
2,655
|
|
2,288
|
|
4,343
|
|
4,349
|
Other
income
|
|
177
|
|
119
|
|
345
|
|
238
|
Interest
expense
|
|
(89)
|
|
(78)
|
|
(148)
|
|
(158)
|
Earnings before
income taxes
|
|
2,743
|
|
2,329
|
|
4,540
|
|
4,429
|
Income tax
expense
|
|
978
|
|
792
|
|
1,583
|
|
1,562
|
Net
earnings
|
|
|
1,765
|
|
1,537
|
|
2,957
|
|
2,867
|
Less: net earnings
attributable to
|
|
|
|
|
|
|
|
|
the noncontrolling interest
|
|
41
|
|
51
|
|
85
|
|
81
|
Net earnings
attributable to
|
|
|
|
|
|
|
|
|
Kewaunee Scientific Corporation
|
|
$
1,724
|
|
$
1,486
|
|
$
2,872
|
|
$
2,786
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
share attributable to
|
|
|
|
|
|
|
|
|
Kewaunee Scientific Corporation stockholders
|
|
|
|
|
|
|
Basic
|
|
|
$
0.64
|
|
$
0.55
|
|
$
1.06
|
|
$
1.03
|
Diluted
|
|
|
$
0.62
|
|
$
0.54
|
|
$
1.04
|
|
$
1.02
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common
|
|
|
|
|
|
|
|
|
shares
outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
|
2,717
|
|
2,706
|
|
2,715
|
|
2,699
|
Diluted
|
|
|
2,776
|
|
2,729
|
|
2,766
|
|
2,718
|
Kewaunee
Scientific Corporation
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
|
|
|
|
|
October
31,
|
|
April 30,
|
|
|
|
|
2017
|
|
2017
|
Assets
|
|
|
|
(Unaudited)
|
|
|
Cash and cash
equivalents
|
|
|
$
11,792
|
|
$
12,506
|
Restricted
Cash
|
|
|
1,392
|
|
1,435
|
Receivables, less
allowances
|
|
|
33,245
|
|
29,889
|
Inventories
|
|
|
|
16,439
|
|
14,935
|
Prepaid expenses and
other current assets
|
|
|
1,888
|
|
1,047
|
Total Current Assets
|
|
|
64,756
|
|
59,812
|
Net property, plant
and equipment
|
|
|
14,061
|
|
14,027
|
Other
assets
|
|
|
|
7,051
|
|
7,077
|
Total
Assets
|
|
|
|
$
85,868
|
|
$
80,916
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Short-term borrowings
and interest rate swaps
|
|
$
7,711
|
|
$
3,591
|
Current portion of
long-term debt
|
|
|
1,167
|
|
918
|
Accounts
payable
|
|
|
14,364
|
|
11,995
|
Other current
liabilities
|
|
|
7,268
|
|
10,423
|
Total Current Liabilities
|
|
|
30,510
|
|
26,927
|
Other non-current
liabilities
|
|
|
10,040
|
|
10,732
|
Total Liabilities
|
|
|
40,550
|
|
37,659
|
Noncontrolling
interest
|
|
|
381
|
|
374
|
Kewaunee Scientific
Corporation equity
|
|
|
44,937
|
|
42,883
|
Total Equity
|
|
|
45,318
|
|
43,257
|
Total Liabilities and
Equity
|
|
|
$
85,868
|
|
$
80,916
|
Contact:
|
Thomas D. Hull
III
|
|
(704)
871-3290
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/kewaunee-scientific-reports-results-for-second-quarter-300567266.html
SOURCE Kewaunee Scientific Corporation