Full Press Release Details
Kewaunee Scientific Announces
First Quarter Results
and Quarterly Dividend
Exchange: NASDAQ (KEQU) Contact: D. Michael Parker
STATESVILLE, N.C. August 22, 2007 -- Kewaunee Scientific Corporation (Nasdaq:
KEQU - news) today announced results for its first quarter ended July 31, 2007
and the declaration of its quarterly dividend.
Net earnings for the quarter were $674,000, or $0.27 per diluted share, as
compared to net earnings of $133,000, or $0.05 per diluted share, for the first
quarter of the prior year. Earnings continued to benefit from improved profit
margins, increased manufacturing efficiencies, savings from alternate sources
for raw materials and components, and other cost improvement initiatives.
Sales for the quarter were $20,784,000, an increase of 7.7% from sales of
$19,294,000 in the prior year. Sales from domestic operations were $18,014,000,
an increase of 8.0% from the prior year period. The domestic marketplace for
laboratory products continued to be healthy during the quarter, particularly in
the educational research market and for the larger laboratory projects. The
marketplace for small and mid-size laboratory projects showed signs of
improvement during the quarter, although it remains very price competitive.
Sales from international operations were $2,770,000, an increase of 5.7% from
the prior year period.
Incoming orders remained strong during the quarter. The order backlog increased
to a record $54.7 million at July 31, 2007, up from $51.1 million at April 30,
2007, and $36.5 million at July 31, 2006.
"Our strategic efforts over the past several years to make Kewaunee a more
efficient company are working well," said William A. Shumaker, President and
Chief Executive Officer. "On-going investments in modern, computerized
equipment, the implementation of "Lean" manufacturing techniques, and the
continuous pursuit of cost improvements are significantly reducing our costs and
increasing profit margins. Our lower costs make us more competitive in the
marketplace and strengthen our market position.
"We continue to have high expectations for growth in sales and profitability of
our international operations. Although this business experienced somewhat modest
sales growth in the first quarter, we expect our international operations to
have a much better second quarter, as several significant international projects
are scheduled for delivery and installation."
The Company's balance sheet remains strong. Bank borrowings and capital lease
obligations totaled $5.3 million at July 31, 2007, down from $9.4 million at
July 31, 2006. The debt-to-equity ratio was .21-to-1 at the end of the quarter,
down from .37-to-1 at the end of the prior year period. Cash on hand was $2.2
million at the end of the quarter, as compared to $2.5 million at the end of the
prior year period. Working capital was $13.0 million at July 31, 2007, up from
$11.0 million at the end of the prior year period.
The Company also announced today that its Board of Directors approved a cash
dividend of seven cents per outstanding share to stockholders of record at the
close of business on September 4, 2007, payable on September 18, 2007.
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 also has subsidiaries in
Singapore and Bangalore, India that serve the Asian 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.
[see financial information on back of page]
Consolidated Statements of Operations [unaudited]
(in thousands, except per share data)
----------------------------
------------ ------------
Net sales $ 20,784 $ 19,294
Cost of products sold 16,521 16,166
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Gross profit 4,263 3,128
Operating expenses 3,148 2,637
------------ ------------
Operating earnings 1,115 491
Interest expense (110) (187)
------------ ------------
Earnings before income taxes 1,008 322
Income tax expense 312 78
------------ ------------
Earnings before minority interests 696 244
Minority interests in subsidiaries 22 111
------------ ------------
Net earnings $ 674 $ 133
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Net earnings per share
Diluted $ 0.27 $ 0.05
Weighted average number of common
shares outstanding (in thousands)
Condensed Consolidated Balance Sheets
------------ ------------
Cash and cash equivalents $ 1,791 $ 2,231
Restricted cash 396 372
Receivables, less allowances 18,868 19,061
Inventories 5,694 5,869
Prepaid expenses and other current assets 1,368 981
------------ ------------
Total current assets 28,117 28,514
Net property, plant and equipment 11,196 11,255
Other assets 5,586 5,471
------------ ------------
Total Assets $ 44,899 $ 45,240
============ ============
Liabilities and Stockholders' Equity