STATESVILLE, N.C., June 24 /PRNewswire-FirstCall/ -- Kewaunee
Scientific Corporation (NASDAQ:KEQU) today reported record sales,
earnings, and order backlog for its fiscal year ended April 30,
2009. Net earnings for the year increased 36% to $4,247,000, or
$1.66 per diluted share, up from net earnings of $3,134,000, or
$1.23 per diluted share, in the prior year. Earnings benefited from
higher sales volume, lower manufacturing costs and improved
operational efficiencies. Sales for the year increased 16% to
$103,978,000, up from sales of $89,510,000 in the prior year. Sales
from domestic operations increased to $90,250,000, up 22.0% from
the prior year. Sales from international operations were
$13,728,000, down 13% from the prior year. Incoming orders activity
was strong throughout the year, as a healthy domestic laboratory
furniture marketplace more than offset the impact of a soft Asian
marketplace. The order backlog increased to a record $62.7 million
at April 30, 2009, up from $60.7 million at January 31, 2009 and
$58.7 million at April 30, 2008. Net earnings for the fourth
quarter were $920,000, or $0.36 per diluted share, up from net
earnings of $446,000, or $0.17 per diluted share, in the prior
year. Sales for the fourth quarter increased to $24,828,000, up 12%
from sales of $22,116,000 in the same period of the prior year.
Sales from domestic operations for the quarter were $22,954,000, up
from sales of $18,015,000 in the same quarter of the prior year,
while sales from international operations were $1,874,000, down
from sales of $4,101,000 in the prior year. The Company's balance
sheet remains strong. Working capital increased to $18.9 million at
April 30, 2009, up from $15.9 million at the end of the prior year.
Cash on hand at the end of the year was $4.0 million, as compared
to $4.3 million at the end of the prior year. Bank borrowings and
capital lease obligations were $6.1 million at year-end, as
compared to $5.0 million at the end of the prior year, and the
debt-to-equity ratio was .23-to-1 at year-end, as compared to
.19-to-1 at the end of the prior year. "This past year was a
rewarding, yet challenging year," said William A. Shumaker,
President and Chief Executive Officer. "Our programs and strategies
over the past few years to make Kewaunee a stronger and more
competitive company were put to the test. During the first half of
the year, we were confronted with escalating prices for certain raw
materials, particularly steel and epoxy resin, and higher energy
and transportation costs. This was followed by the global economic
slowdown in the second half of the year. Despite these and other
challenges, year-over-year increases in sales and net earnings were
achieved for each quarter of the year, and we continued to build
our order backlog. "Looking toward fiscal year 2010, we believe a
number of factors have the Company well-positioned for another good
year," continued Mr. Shumaker. "A healthy domestic laboratory
furniture marketplace, our record order backlog, and excellent
performances by our factories are providing us strong momentum. The
Asian laboratory furniture marketplace, which was soft the past
year, is expected to improve and provide increased opportunities.
The move to our new, modern plant in Bangalore, India, is now
complete. This plant has full manufacturing capabilities which
positions us to compete more broadly for additional projects in
Asia and the Middle East. Next year will also present a number of
challenges. These include uncertainty as to when the global
economic slowdown will end and higher pension costs for the Company
due to losses in our pension investments portfolio." Kewaunee
Scientific Corporation is a recognized leader in the design,
manufacture, and installation of scientific and technical
furniture. The Company's corporate headquarters and domestic
manufacturing facilities are located in Statesville, North
Carolina. The Company has subsidiaries in Singapore and Bangalore,
India which serve the Asian and Middle East markets. Kewaunee
Scientific's website is located at http://www.kewaunee.com/.
Certain statements in this release constitute "forward-looking"
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements involve known
and unknown risks, uncertainties and other factors that could
significantly impact results or achievements expressed or implied
by such forward-looking statements. These factors include, but are
not limited to, economic, competitive, governmental, and
technological factors affecting the Company's operations, markets,
products, services, and prices. Consolidated Statements of
Operations (in thousands, except per share data) Three Months Ended
Years Ended April 30 April 30 2009 2008 2009 2008 ---- ---- ----
---- (Unaudited) Net sales $24,828 $22,116 $103,978 $89,510 Cost of
products sold 19,759 17,579 82,605 70,338 ------ ------ ------
------ Gross profit 5,069 4,537 21,373 19,172 Operating expenses
3,405 3,748 14,289 13,559 ----- ----- ------ ------ Operating
earnings 1,664 789 7,084 5,613 Other income (expense) 8 49 (28) 47
Interest expense (49) 8 (280) (294) ----- ----- ----- -----
Earnings before income taxes 1,623 846 6,776 5,366 Income tax
expense 669 342 2,264 1,733 --- --- ----- ----- Earnings before
minority interests 954 504 4,512 3,633 Minority interests in
subsidiaries (34) (58) (265) (499) ---- --- ----- ----- Net
earnings $920 $446 $4,247 $3,134 ==== ==== ====== ====== Net
earnings per share Basic $0.36 $0.17 $1.66 $1.24 Diluted $0.36
$0.17 $1.66 $1.23 Weighted average number of Common shares
outstanding (in thousands) Basic 2,556 2,551 2,555 2,530 Diluted
2,556 2,577 2,561 2,557 Condensed Consolidated Balance Sheets (in
thousands) April 30 April 30 Assets 2009 2008 ---- ---- Cash and
cash equivalents $3,559 $3,784 Restricted cash 456 480 Receivables,
less allowances 24,526 20,087 Inventories 7,839 6,984 Prepaid
expenses and other current assets 1,165 1,847 ----- ----- Total
current assets 37,545 33,182 Net property, plant and equipment
11,369 11,825 Other assets 3,615 5,599 ----- ----- Total Assets
$52,529 $50,606 ======= ======= Liabilities and Stockholders'
Equity Short-term borrowings $5,720 $4,551 Current obligations
under capital leases 220 323 Accounts payable 8,812 8,929 Other
current liabilities 3,911 3,459 ----- ----- Total current
liabilities 18,663 17,262 Other non-current liabilities 6,913 6,397
Total stockholders' equity 26,953 26,947 ------ ------ Total
Liabilities and Stockholders' Equity $52,529 $50,606 =======
======= Contact: D. Michael Parker 704/871-3290 DATASOURCE:
Kewaunee Scientific Corporation CONTACT: D. Michael Parker of
Kewaunee Scientific Corporation, +1-704-871-3290 Web Site:
http://www.kewaunee.com/
Copyright