Full Press Release Details
Kewaunee Scientific Reports Results for Second Quarter
STATESVILLE, N.C., Dec. 6, 2016 /PRNewswire/ -- Kewaunee Scientific Corporation (Nasdaq: KEQU) today reported results for its second quarter of fiscal 2017, ended October 31, 2016.
Net earnings for the quarter increased 114% to
$1,486,000, or $0.54 per diluted share, as compared to net earnings of $695,000, or $0.26 per diluted share, in the second quarter last year.
Sales for the quarter were $36,329,000, a 17.1% increase from sales of $31,037,000 in the prior year. Domestic sales for the quarter were $28,211,000, up 7.4% from sales of $26,279,000 in the second quarter of last year. International sales for the quarter were $8,118,000, up 70.6% from sales of $4,758,000 in the second quarter last year.
The growth in Domestic sales was a result of continued strength of incoming orders across our distribution channels as the marketplace for laboratory furniture and scientific equipment in the United States continued to improve. International sales were strong as we finished deliveries on multi-year laboratory projects in India and Kuwait.
The Company also announced during the quarter that it
was awarded a second large multi-year laboratory project for Kuwait University Sabah Al-Salem University City at the College of Science, valued at $18.5M.
The Company's order backlog was $101.1 million at October 31, 2016, as compared to $92.4 million at October 31, 2015, and $86.2 million at July 31, 2016. 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 $7.6 million at the end of the quarter, as compared to $3.3 million at the end of the second quarter last year. Working capital was $31.4 million, as compared to $29.0 million at the end of the second quarter last year. Short-term debt and interest rate swaps were $6.7 million at the end of the quarter, as compared to $5.5 million at the end of the second quarter last year, and total bank borrowings and
interest rate swaps were $10.3 million, as compared to $9.5 million at the end of the second quarter last year.
I am very happy with our results this quarter as we continue to compete for and win significant orders globally, demonstrating the strength and market leadership of Kewaunee, said David M. Rausch, Kewaunee's President and Chief Executive Officer. I am extremely pleased that Kewaunee has been awarded a second large order in Kuwait on which we will begin design and engineering during the second half of the current fiscal year, followed promptly by the production phase of the project.
Looking forward, our third quarter is always our most challenging due to the holidays as well as customers managing their year-end inventory; however, I am optimistic that the results for the current fiscal year will be strong as we continue to see new
opportunities worldwide.
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 ocated 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 | Six months ended | ||||||||
| October 31, | October 31, | ||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||
| Net sales | $ 36,329 | $ 31,037 | $ 73,608 | $ 62,126 | |||||
| Cost of products sold | 29,225 | 25,505 | 59,365 | 50,751 | |||||
| Gross profit | 7,104 | 5,532 | 14,243 | 11,375 | |||||
| Operating expenses | 4,816 | 4,403 | 9,894 | 8,722 | |||||
| Operating earnings | 2,288 | 1,129 | 4,349 | 2,653 | |||||
| Other income | 119 | 85 | 238 | 187 | |||||
| Interest expense | (78) | (61) | (158) | (153) | |||||
| Earnings before income taxes | 2,329 | 1,153 | 4,429 | 2,687 | |||||
| Income tax expense | 792 | 446 | 1,562 | 1,017 | |||||
| Net earnings | 1,537 | 707 | 2,867 | 1,670 | |||||
| Less: net earnings attributable to | |||||||||
| the noncontrolling interest | 51 | 12 | 81 | 35 | |||||
| Net earnings attributable to | |||||||||
| Kewaunee Scientific Corporation | $ 1,486 | $ 695 | $ 2,786 | $ 1,635 | |||||
| Net earnings per share attributable to | |||||||||
| Kewaunee Scientific Corporation stockholders | |||||||||
| Basic | $ 0.55 | $ 0.26 | $ 1.03 | $ 0.62 | |||||
| Diluted | $ 0.54 | $ 0.26 | $ 1.02 | $ 0.61 | |||||
| Weighted average number of common | |||||||||
| shares outstanding | |||||||||
| Basic | 2,706 | 2,671 | 2,699 | 2,650 | |||||
| Diluted | 2,729 | 2,690 | 2,718 | 2,674 |
| Kewaunee Scientific Corporation | |||||||
| Condensed Consolidated Balance Sheets | |||||||
| (in thousands) | |||||||
| October 31, | April 30, | ||||||
| 2016 | 2016 | ||||||
| Assets | (Unaudited) | ||||||
| Cash and cash equivalents | $ 7,579 | $ 5,222 | |||||
| Restricted Cash | 1,649 | 1,567 | |||||
| Receivables, less allowances | 29,040 | 27,835 | |||||
| Inventories | 16,789 | 15,626 | |||||
| Prepaid expenses and other current assets | 1,023 | 707 | |||||
| Total Current Assets | 56,080 | 50,957 | |||||
| Net property, plant and equipment | 14,579 | 14,118 | |||||
| Other assets | 6,895 | 7,330 | |||||
| Total Assets | $ 77,554 | $ 72,405 | |||||
| Liabilities and Equity | |||||||
| Short-term borrowings and interest rate swaps | $ 6,722 | $ 3,818 | |||||
| Current portion of long-term debt | 421 | 421 | |||||
| Accounts payable | 10,821 | 11,722 | |||||
| Other current liabilities | 6,676 | 4,989 | |||||
| Total Current Liabilities | 24,640 | 20,950 | |||||
| Other non-current liabilities | 12,165 | 12,903 | |||||
| Total Liabilities | 36,805 | 33,853 | |||||
| Noncontrolling interest | 390 | 310 | |||||
| Kewaunee Scientific Corporation equity | 40,359 | 38,242 | |||||
| Total Equity | 40,749 | 38,552 | |||||
| Total Liabilities and Equity | $ 77,554 | $ 72,405 |