STATESVILLE, N.C., Aug. 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 July
31, 2018.
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.
"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 the market."
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. 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.
Contact:
|
Donald T. Gardner
III
|
|
(704)
871-3274
|
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,
|
|
April
30,
|
|
|
2019
|
|
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
|
Total
Assets
|
|
$
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
|
|
|
|
|
|
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SOURCE Kewaunee Scientific Corporation