Kewaunee Scientific Reports Record Sales for Year and Fourth Quarter

Jun 25, 2013, 13:58 ET from Kewaunee Scientific Corporation

STATESVILLE, N.C., June 25, 2013 /PRNewswire/ -- Kewaunee Scientific Corporation (NASDAQ: KEQU) today announced results for its fourth quarter and year ended April 30, 2013.

Fiscal Year 2013 Results Sales for the year were a record $117,121,000, up 13.9% from sales of $102,847,000 in the prior year. Net earnings for the year were $3,044,000, or $1.17 per diluted share, up from net earnings of $1,031,000, or $0.40 per diluted share, in the prior year. Earnings for the year were favorably impacted by the increase in sales, strong earnings from domestic operations, and reduced manufacturing, overhead, and administrative costs.

Sales from domestic operations for the year were $93,519,000, up 11.4% from sales of $83,971,000 in the prior year. The marketplace for private sector laboratory construction projects held up well during the year, as increased activity for mid-sized projects more than offset fewer large projects. The marketplace for publicly funded wood educational projects continued to be well below pre-recession levels, with fewer large project opportunities available during the year. The Company continued to successfully win projects and increase market share in most of its geographic markets, although pricing remained very competitive.

Sales from international operations for the year were $23,602,000, up 25.0% from sales of $18,876,000 in the prior year. The increase resulted as several large international orders from prior periods were manufactured and shipped during the year. The Company continues to have a strong backlog of international orders and to see good opportunities for growth in its international markets.

The order backlog was $80.2 million at April 30, 2013, as compared to $86.2 million at April 30, 2012. The change in the backlog reflects the manufacturing and shipping of a large international order during the year, which was partially offset by a small increase in the domestic order backlog.

Fourth Quarter Results Sales for the fourth quarter were a record $31,803,000, up 9.7% from sales of $28,990,000 in the same period of the prior year. Sales from domestic operations were $24,762,000, up 26.3% over sales of $19,607,000 in the prior year. Sales from international operations were $7,041,000, a decline of 25.0% from sales of $9,383,000 in the same period of the prior year.

Net earnings for the quarter were $1,217,000, or $0.46 per diluted share, as compared to earnings of $1,256,000, or $0.49 per diluted share, in the same period of the prior year.  Earnings for the quarter were favorably impacted by the increase in sales, very strong earnings from domestic operations, and reduced manufacturing, overhead, and administrative costs. Sales and earnings from international operations were below the same period last year, as the last year period was boosted by the manufacturing and shipping of several large international orders.

The Company's balance sheet and financial condition remain strong.  Cash on hand at the end of the year was $6.5 million and working capital was $25.1 million.  Short term borrowings under the Company's $15 million revolver line of credit were $7.0 million and term debt outstanding was $3.5 million. The debt-to-equity ratio at year end was .33-to-1.

"Fiscal year 2013 was an excellent year," said William A. Shumaker, Kewaunee's Chief Executive Officer. "I am pleased that we exceeded our sales and earnings goals and made excellent progress against our goals to strengthen the Kewaunee brand, strengthen relationships with existing customers, build relationships with new and prospective customers, reduce costs, and increase market share. The progress in all of these areas not only resulted in record sales for the fourth quarter and year, but it provides momentum as we enter the new year.

"As I look forward to fiscal year 2014, I expect progress to continue in all of the above areas. Although my retirement will take me out of the day-to-day operations of the Company as of the end of this month, I have the utmost confidence in the members of the management team, each of whom has many years of valuable experience in the laboratory furniture industry."

Kewaunee Scientific Corporation is a recognized global leader in the design, manufacture, and installation of laboratory, healthcare, and technical furniture products. Laboratory furniture products include both steel and wood cabinetry, fume hoods, adaptable modular systems, moveable workstations, biological safety cabinets, and epoxy resin counters and sinks. Healthcare furniture products include laminate casework, systems, and related products for healthcare applications. Technical furniture products include column systems, slotted-post systems, pedestal systems, and stand-alone benches.

The Company's corporate headquarters are located in Statesville, North Carolina. Three manufacturing facilities are located in Statesville, NC serving the domestic and international markets. One manufacturing facility is located in Bangalore, India serving the local and Asian markets. The Company has subsidiaries in Singapore and India. 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.

 

Kewaunee Scientific Corporation

Consolidated Statements of Operations

(in thousands, except per share data)

Three months ended

Years ended

April 30,

April 30,

2013

2012

2013

2012

(Unaudited)

Net sales

$      31,803

$        28,990

$ 117,121

$ 102,847

Cost of products sold

25,024

21,638

94,863

83,691

Gross profit

6,779

7,352

22,258

19,156

Operating expenses

4,776

4,493

16,981

16,443

Operating earnings

2,003

2,859

5,277

2,713

Other income

46

43

306

271

Interest expense

(67)

(112)

(362)

(445)

Earnings before income taxes

1,982

2,790

5,221

2,539

Income tax expense

578

976

1,540

739

Net earnings

1,404

1,814

3,681

1,800

Less: net earnings attributable to

    the noncontrolling interest

187

558

637

769

Net earnings attributable to   Kewaunee Scientific Corporation

$        1,217

$          1,256

$      3,044

$      1,031

Net earnings per share attributable to  Kewaunee Scientific Corporation stockholders

       Basic

$          0.47

$             0.49

$        1.18

$        0.40

       Diluted

$          0.46

$             0.49

$        1.17

$        0.40

Weighted average number of common

shares outstanding

       Basic

2,591

2,579

2,587

2,579

       Diluted

2,613

2,580

2,600

2,580

Kewaunee Scientific Corporation

Condensed Consolidated Balance Sheets

(in thousands)

April 30,

April 30,

2013

2012

Assets

Cash and cash equivalents

$          5,811

$      6,188

Restricted Cash

691

704

Receivables, less allowances

25,884

22,469

Inventories

13,203

11,760

Prepaid expenses and other current assets

1,641

1,702

    Total Current Assets

47,230

42,823

Net property, plant and equipment

15,098

15,346

Other assets

6,414

5,192

Total Assets

$        68,742

$    63,361

Liabilities and Equity

Short-term borrowings

$          6,997

$      6,816

Current obligations under capital leases and long-term debt

200

236

Accounts payable

10,406

8,848

Other current liabilities

4,512

3,565

    Total Current Liabilities

22,115

19,465

Other non-current liabilities

12,934

12,238

    Total Liabilities

35,049

31,703

Noncontrolling interest

2,017

2,147

Kewaunee Scientific Corporation equity

31,676

29,511

    Total Equity

33,693

31,658

Total Liabilities and Stockholders' Equity

$        68,742

$    63,361

Contact:

D. Michael Parker

704/871-3290

 

SOURCE Kewaunee Scientific Corporation



RELATED LINKS

http://www.kewaunee.com