Full Press Release Details
Scientific Reports Results for Year and Fourth Quarter
N.C., June 23 /PRNewswire-FirstCall/ -- Kewaunee Scientific Corporation (Nasdaq:
KEQU) today announced results for its year and fourth quarter ended April 30,
the year were $99,093,000, down 4.7% from sales of $103,978,000 in the prior
year. The lower sales resulted from a decline in sales of small and mid-sized
projects during the year, along with lower sales from the Company's
international operations. Higher sales of larger domestic laboratory
projects partially offset the decrease.
earnings for the year were $3,572,000, or $1.39 per diluted share, down from net
earnings of $4,247,000, or $1.66 per diluted share, in the prior year. Earnings
for the year were unfavorably impacted by an after-tax increase in pension
expense of $627,000, or $0.24 per diluted share, and the lower sales, as
compared to the prior year. The pension expense increase primarily resulted from
the prior year's decline in the market value of pension
backlog increased to a record $68.9 million at April 30, 2010, up from $62.7
million at April 30, 2009. The order backlog, which is heavily weighted with
larger projects that have longer delivery requirements, benefited from a large
international order received during the year.
from domestic operations were $87,561,000, down 3.0% from sales of $90,250,000
in the prior year, and sales from international operations for the year were
$11,532,000, down 16.0% from sales of $13,728,000 in the prior year. The
international laboratory furniture marketplace, which was hit particularly hard
by the economic slowdown, appeared to show signs of recovery late in the year as
quotation activity and sales increased.
economic slowdown adversely affected all of the Company's markets, both
domestically and internationally," said William A. Shumaker, President and Chief
Executive Officer. "A decline in small and mid-sized projects
occurred as customers deferred placing orders due to the recession. These
types of projects are more sensitive to current economic conditions and are
subject to delay because of their size and funding sources. Larger
laboratory projects are less impacted by changes in economic conditions, as they
are normally funded far in advance of construction. Also, our
operating costs increased in the second half of the year, as the irregular
inflow of orders and changes to project schedules disrupted factory production
and required us to spend much higher overtime dollars.
in the midst of these challenges, progress was made in a number of important
areas," continued Mr. Shumaker. "We finished the year with a record order
backlog as we continued to win projects in all of our markets, especially larger
projects. In the second quarter, we were successful in winning orders for large
projects in Saudi Arabia and Kuwait, areas we have targeted as important new
growth markets. Following the move into our new, larger Bangalore, India plant
earlier in the year, in the fourth quarter, we began an expansion of our
manufacturing facilities in Statesville. This project is progressing well
and is scheduled for completion in early fall."
the fourth quarter were $23,942,000, down 3.6% from sales of $24,828,000 in the
same period of the prior year. Sales from domestic operations were
$20,409,000, down 11.1% from sales of $22,954,000 in the same quarter of the
prior year. Sales from international operations increased to $3,533,000,
up from sales of $1,874,000 in the prior year period.
earnings for the fourth quarter were $528,000, or $0.20 per diluted share, down
from net earnings of $920,000, or $0.36 per diluted share, in the prior year
period. Earnings for the quarter were unfavorably impacted by lower sales
and an after-tax increase in pension expense of $157,000, or $0.06 per diluted
share, as compared to the prior year.
Company's financial condition remains strong. Working capital increased to
$20.1 million at April 30, 2010, up from $18.9 million at the end of the prior
year. Cash on hand at the end of the year was $2.3 million, as compared to
$4.0 million at the end of the prior year. Bank borrowings and capital lease
obligations were $5.1 million at year-end, as compared to $6.1 million at the
end of the prior year, and the debt-to-equity ratio was .17-to-1 at year-end, as
compared to .23-to-1 at the end of the prior year.
forward, our strong order backlog, increased manufacturing capabilities at our
new Bangalore plant and Statesville operations, expanding international
opportunities, strong financial position, and the commitment of our associates
provide us optimism for another good year in fiscal year 2011," continued
Scientific Corporation is a recognized leader in the design, manufacture, and
installation of scientific and technical furniture. The Company's corporate
headquarters are located in Statesville, North Carolina. The Company's
manufacturing facilities are located in Statesville and Bangalore, India.
The Company has subsidiaries in Singapore and Bangalore, India that serve the
Asian and Middle East markets. Kewaunee Scientific's website is located at
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
| Contact: | D. Michael Parker |
| 704/871-3290 |
Statements of Operations
thousands, except per share data)
| Three Months Ended | Years Ended | |||||||||||||||
| April 30 | April 30 | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| Net sales | $ | 23,942 | $ | 24,828 | $ | 99,093 | $ | 103,978 | ||||||||
| Cost of products sold | 19,198 | 19,759 | 77,690 | 82,605 | ||||||||||||
| Gross profit | 4,744 | 5,069 | 21,403 | 21,373 | ||||||||||||
| Operating expenses | 3,971 | 3,405 | 15,576 | 14,289 | ||||||||||||
| Operating earnings | 773 | 1,664 | 5,827 | 7,084 | ||||||||||||
| Other income (expense) | 1 | 8 | 1 | (28 | ) | |||||||||||
| Interest expense | (42 | ) | (49 | ) | (157 | ) | (280 | ) | ||||||||
| Earnings before income taxes | 732 | 1,623 | 5,671 | 6,776 | ||||||||||||
| Income tax expense | 248 | 669 | 1,921 | 2,264 | ||||||||||||
| Net earnings | 484 | 954 | 3,750 | 4,512 | ||||||||||||
| Less: net earnings attributable to the noncontrolling interest | (44 | ) | 34 | 178 | 265 | |||||||||||
| Net earnings attributable to Kewaunee Scientific Corporation | $ | 528 | $ | 920 | $ | 3,572 | $ | 4,247 | ||||||||
| Net earnings per share attributable to Kewaunee Scientific Corporation stockholders | ||||||||||||||||
| Basic | $ | 0.20 | $ | 0.36 | $ | 1.39 | $ | 1.66 | ||||||||
| Diluted | $ | 0.20 | $ | 0.36 | $ | 1.39 | $ | 1.66 | ||||||||
| Weighted average number of common shares outstanding (in thousands) | ||||||||||||||||
| Basic | 2,572 | 2,556 | 2,564 | 2,555 | ||||||||||||
| Diluted | 2,584 | 2,556 | 2,575 | 2,561 |
Consolidated Balance Sheets
thousands, except per share data)
| April 30 | April 30 | |||||||
| 2010 | 2009 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 1,722 | $ | 3,559 | ||||
| Restricted cash | 544 | 456 | ||||||
| Receivables, less allowances | 26,169 | 24,526 | ||||||
| Inventories | 8,350 | 7,839 | ||||||
| Prepaid expenses and other current assets | 1,797 | 1,165 | ||||||
| Tota l current assets | 38,582 | 37,545 | ||||||
| Net property, plant and equipment | 13,815 | 11,369 | ||||||
| Other assets | 4,224 | 3,615 | ||||||
| Total Assets | $ | 56,621 | $ | 52,529 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Short-term borrowings | $ | 4,872 | $ | 5,720 | ||||
| Current obligations under capital leases | 82 | 220 | ||||||
| Accounts payable | 9,540 | 8,812 | ||||||
| Other current liabilities | 4,003 | 3,911 | ||||||
| Total current liabilities | 18,497 | 18,663 | ||||||
| Other non-current liabilities | 6,452 | 5,607 | ||||||
| Total liabilities | 24,949 | 24,270 | ||||||
| Noncontrolling interest | 1,239 | 1,306 | ||||||
| Kewaunee Scientific Corporation equity | 30,433 | 26,953 | ||||||
| Total equity | 31,672 | 28,259 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 56,621 | $ | 52,529 |
D. Michael Parker, +1-704-871-3290