Full Press Release Details
Kewaunee Scientific Reports Results for First Quarter
STATESVILLE, N.C., Aug. 30, 2016 /PRNewswire/ -- Kewaunee Scientific Corporation (Nasdaq: KEQU) today reported results for its first quarter ended July 31, 2016.
Sales for the quarter were $37,279,000, a 20% increase from sales of $31,089,000 in the prior year first quarter. Domestic sales for the quarter were $29,637,000, up 22% from sales of $24,315,000 in the first quarter of last year. International sales for the quarter were $7,642,000, up 13% from sales of $6,774,000 in
the first quarter last year.
Net earnings for the quarter were up 38% at $1,300,000, or $0.48 per diluted share, as compared to net earnings of $940,000, or $0.35 per diluted share, in the first quarter last year.
Both Domestic and International sales were strong during the quarter, as the Company successfully met the demands of the marketplace for laboratory furniture and scientific equipment. Domestically, both dealer sales and direct sales were strong across all markets served by the Company. Internationally, the Company benefited from a large order in the Middle East that was partially delivered in the first quarter.
The order backlog was $86.2 million at July 31, 2016, as compared to $86.7 million at July 31, 2015, and $100.5 million at April 30, 2016. The Company is currently competing for a number of large projects that, if won, would significantly
strengthen the current order backlog.
The Company's balance sheet and financial condition remain strong. Unrestricted cash on hand was $6,711,000 at the end of the quarter, as compared to $2,899,000 at the end of the first quarter last year. Working capital was $30,815,000 as compared to $28,523,000 at the end of the first quarter last year. Short-term debt and interest rate swaps were $6,958,000 at the end of the quarter, as compared to $4,901,000 at the end of the first quarter last year, and long-term debt was $3,665,000 as compared to $4,086,000 at the end of the first quarter last year. The debt-to-equity ratio at July 31, 2016 was .27-to-1, as compared to .25-to-1 at July 31, 2015.
We had a very strong first quarter with our Domestic and International businesses posting strong year-over-year sales growth, said David M. Rausch, Kewaunee's President and
Chief Executive Officer. We have grown our sales and net earnings, continuing to operate at high levels and benefiting from ongoing productivity improvements and cost reduction programs.
Looking forward, I remain optimistic that sales will continue to increase in fiscal year 2017. I expect our earnings improvement to be sustainable as our order backlog and opportunities in the market remain strong.
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, sales office, and assembly operation are located in Suzhou Industrial Park, 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
| Kewaunee Scientific Corporation | ||||
| Consolidated Statements of Operations (Unaudited) | ||||
| (in thousands, except per share data) | ||||
| Three months ended | ||||
| July 31, | ||||
| 2016 | 2015 | |||
| Net sales | $ 37,279 | $ 31,089 | ||
| Cost of products sold | 30,140 | 25,246 | ||
| Gross profit | 7,139 | 5,843 | ||
| Operating expenses | 5,078 | 4,319 | ||
| Operating earnings | 2,061 | 1,524 | ||
| Other income | 119 | 102 | ||
| Interest expense | (80) | (92) | ||
| Earnings before income taxes | 2,100 | 1,534 | ||
| Income tax expense | 770 | 571 | ||
| Net earnings | 1,330 | 963 | ||
| Less: net earnings attributable to the noncontrolling interest | 30 | 23 | ||
| Net earnings attributable to Kewaunee Scientific Corporation | $ 1,300 | $ 940 | ||
| Net earnings per share attributable to | ||||
| Kewaunee Scientific Corporation stockholders | ||||
| Basic | $0.48 | $0.36 | ||
| Diluted | $0.48 | $0.35 | ||
| Weighted average number of common shares outstanding | ||||
| Basic | 2,693 | 2,630 | ||
| Diluted | 2,707 | 2,659 | ||
| Kewaunee Scientific Corporation | ||||
| Condensed Consolidated Balance Sheets | ||||
| (in thousands) | ||||
| July 31, | April 30, | |||
| 2016 | 2016 | |||
| Assets | (Unaudited) | |||
| Cash and cash equivalents | $ 6,711 | $ 5,222 | ||
| Restricted Cash | 1,626 | 1,567 | ||
| Receivables, less allowances | 30,517 | 27,835 | ||
| Inventories | 16,785 | 15,626 | ||
| Prepaid expenses and other current assets | 1,287 | 707 | ||
| Total Current Assets | 56,926 | 50,957 | ||
| Net property, plant and equipment | 14,527 | 14,118 | ||
| Other assets | 6,955 | 7,330 | ||
| Total Assets | $ 78,408 | $ 72,405 | ||
| Liabilities and Equity | ||||
| Short-term borrowings and interest rate swaps | $ 6,958 | $ 3,818 | ||
| Current portion of long-term debt | 421 | 421 | ||
| Accounts payable | 13,821 | 11,722 | ||
| Other current liabilities | 4,911 | 4,989 | ||
| Total Current Liabilities | 26,111 | 20,950 | ||
| Other non-current liabilities | 12,638 | 12,903 | ||
| Total Liabilities | 38,749 | 33,853 | ||
| Noncontrolling interest | 339 | 310 | ||
| Kewaunee Scientific Corporation stockholders' equity | 39,320 | 38,242 | ||
| Total Equity | 39,659 | 38,552 | ||
| Total Liabilities and Stockholders' Equity | $ 78,408 | $ 72,405 |