Full Press Release Details
Kewaunee Scientific Reports Results for First Quarter
| Exchange: | NASDAQ (KEQU) | Contact: | Donald T. Gardner III | |||||||
| (704) 871-3274 |
STATESVILLE, N.C. August 27, 2019 PRNewswire / Kewaunee Scientific Corporation (NASDAQ: KEQU) today reported
results for its first quarter of fiscal year 2020, ended July 31, 2019.
Sales for the quarter were $39,336,000, a 6.7% decrease from sales of
$42,152,000 in the prior year first quarter. Domestic sales for the quarter were $29,287,000, down 18.8% from sales of $36,070,000 in the first quarter of last year. International sales for the quarter were $10,049,000, up 65.2% from sales of
$6,082,000 in the first quarter last year. The decrease in Domestic sales was a result of lower dealer sales in the current quarter versus those in the prior year first quarter. International sales increased as a result of a large order with a new
customer and continued strength in the Indian laboratory infrastructure market.
Pre-tax earnings for the quarter
were $665,000 compared to $1,893,000 for the prior year period. Pre-tax earnings were lower when compared to the prior year period because of lower Domestic sales and higher operating costs and investment in
our International segment. Net earnings for the quarter were $471,000, or $0.17 per diluted share, a decrease of 68.4% as compared to net earnings of $1,489,000, or $0.53 per diluted share, for the quarter ended July 31, 2018.
The Company s order backlog is $102 million at July 31, 2019, as compared to $101 million at April 30, 2019 and $102 million at
Unrestricted cash on hand was $11.7 million at the end of the quarter, as compared to $9.6 million at the end of the first
quarter last year. Working capital was $31.0 million, as compared to $35.6 million at the end of the first quarter last year. Short-term debt and interest rate swaps were $13.3 million at the end of the quarter, as compared to
$7.5 million at the end of the first quarter last year, and long-term debt was $127,000 as compared to $972,000 at the end of the first quarter last year. The
debt-to-equity ratio at July 31, 2019 was .32-to-1, as compared to .23-to-1 at July 31, 2018.
Recognizing the challenging second half
of fiscal year 2019, I am pleased with the Company s first quarter sales results for fiscal year 2020 and the progress we are making to return to sustained levels of profitability and cash generation, said Thomas D. Hull III,
Kewaunee s President and Chief Executive Officer.
OFFICES P. O. BOX 1842, STATESVILLE, NORTH CAROLINA 28687-1842 2700 WEST FRONT STREET, STATESVILLE,
NORTH CAROLINA 28677-2927
PHONE 704-873-7202 FAX 704-873-1275
The Company is recovering from the decline in our Domestic volume during the second half of fiscal year
2019. We continue to invest in our leadership team and are increasing our capabilities in India to better serve our customers. We believe the market for laboratory furniture and infrastructure remains healthy, and Kewaunee is positioned well within
About Kewaunee Scientific
in 1906, Kewaunee Scientific Corporation is a recognized global leader in the design, manufacture, and installation of laboratory, healthcare, and technical furniture products. The Company s 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 forwardlooking 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
Condensed Consolidated Statements of Operations (Unaudited)
($ and shares in thousands, except per share amounts)
| Three months ended July 31, | ||||||||
| 2019 | 2018 | |||||||
| Net sales | $ | 39,336 | $ | 42,152 | ||||
| Cost of products sold | 32,390 | 34,569 | ||||||
| Gross profit | 6,946 | 7,583 | ||||||
| Operating expenses | 6,170 | 5,763 | ||||||
| Operating earnings | 776 | 1,820 | ||||||
| Other income | 56 | 164 | ||||||
| Interest expense, net | (167 | ) | (91 | ) | ||||
| Earnings before income taxes | 665 | 1,893 | ||||||
| Income tax expense | 169 | 395 | ||||||
| Net earnings | 496 | 1,498 | ||||||
| Less: net earnings attributable to the noncontrolling interest | 25 | 9 | ||||||
| Net earnings attributable to Kewaunee Scientific Corporation | $ | 471 | $ | 1,489 | ||||
| Net earnings per share attributable to Kewaunee Scientific Corporation stockholders | ||||||||
| Basic | $ | 0.17 | $ | 0.54 | ||||
| Diluted | $ | 0.17 | $ | 0.53 | ||||
| Weighted average number of common shares outstanding | ||||||||
| Basic | 2,750 | 2,736 | ||||||
| Diluted | 2,771 | 2,804 | ||||||
| Kewaunee Scientific Corporation Condensed Consolidated Balance Sheets ($ in thousands) | ||||||||
| July 31, 2019 | April 30, 2019 | |||||||
| Assets | (Unaudited) | |||||||
| Cash and cash equivalents | $ | 11,653 | $ | 10,647 | ||||
| Restricted cash | 928 | 509 | ||||||
| Receivables, less allowances | 36,231 | 33,259 | ||||||
| Inventories | 16,351 | 17,206 | ||||||
| Prepaid expenses and other current assets | 3,839 | 3,736 | ||||||
| Total Current Assets | 69,002 | 65,357 | ||||||
| Net property, plant and equipment | 16,861 | 16,462 | ||||||
| Right of use assets | 6,785 | |||||||
| Other assets | 5,893 | 5,404 | ||||||
| $ | 98,541 | $ | 87,223 | |||||
| Liabilities and Stockholders Equity | ||||||||
| Short-term borrowings and interest rate swaps | $ | 13,279 | $ | 9,513 | ||||
| Current portion of long-term debt and lease obligations | 2,017 | 1,184 | ||||||
| Accounts payable | 15,393 | 15,190 | ||||||
| Other current liabilities | 7,343 | 6,846 | ||||||
| Total Current Liabilities | 38,032 | 32,733 | ||||||
| Other non-current liabilities | 12,572 | 6,787 | ||||||
| Total Liabilities | 50,604 | 39,520 | ||||||
| Kewaunee Scientific Corporation equity | 47,304 | 47,100 | ||||||
| Noncontrolling interest | 633 | 603 | ||||||
| Total Stockholders Equity | 47,937 | 47,703 | ||||||
| Total Liabilities and Stockholders Equity | $ | 98,541 | $ | 87,223 |