UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

For the quarterly period ended JanuaryJuly 31, 2012

or

For the transition period from         to

Commission file number 0-5286

KEWAUNEE SCIENTIFIC CORPORATION

(Exact name of registrant as specified in its charter)

Registrant’s telephone number, including area code: (704) 873-7202

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

As of March 5,September 10, 2012, the registrant had outstanding 2,579,4642,587,271 shares of Common Stock.

KEWAUNEE SCIENTIFIC CORPORATION

INDEX TO FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED JANUARYJULY 31, 2012

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Part 1. Financial Information

Item 1. Financial Statements

Kewaunee Scientific Corporation

Consolidated Statements of Operations

(Unaudited)

(in thousands, except per share data)

See accompanying notes to consolidated financial statements.

Kewaunee Scientific Corporation

1Consolidated Statements of Comprehensive Income

(in thousands)

See accompanying notes to consolidated financial statements.

Kewaunee Scientific Corporation

Consolidated Balance Sheets

(in thousands)

See accompanying notes to consolidated financial statements.

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Kewaunee Scientific Corporation

Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

See accompanying notes to consolidated financial statements.

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Kewaunee Scientific Corporation

Notes to Consolidated Financial Statements

(unaudited)

A.Financial Information

The unaudited interim consolidated financial statements of Kewaunee Scientific Corporation (the “Company” or “Kewaunee”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “Commission”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted, although the Company believes that the disclosures are adequate to make the information presented not misleading.

These interim consolidated financial statements include all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of these financial statements and should be read in conjunction with the consolidated financial statements and notes included in the Company’s 20112012 Annual Report to Stockholders. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. The condensed consolidated balance sheet as of April 30, 20112012 included in this interim period filing has been derived from the audited financial statements at that date, but does not include all of the information and related notes required by generally accepted accounting principles (GAAP) for complete financial statements.

The preparation of the interim consolidated financial statements requires management to make certain estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates.

B.Inventories

Inventories consisted of the following (in thousands):

For interim reporting, LIFO inventories are computed based on year-to-date quantities and interim changes in price levels. Changes in quantities and price levels are reflected in the interim consolidated financial statements in the period in which they occur.

C.Comprehensive Income (Loss)

A reconciliation of net earnings and total comprehensive income for the three and nine months ended January 31, 2012 and 2011 is as follows (in thousands):

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Assets and liabilities for the Company’s foreign subsidiaries are translated at exchange rates prevailing on the balance sheet date. Revenues and expenses are translated at weighted average exchange rates prevailing during the period and any resulting translation adjustments are reported separately in stockholders’ equity.

D.Segment Information

The following table provides financial information by business segments for the three and nine months ended JanuaryJuly 31, 2012 and 2011 (in thousands):

E.D.Defined Benefit Pension Plans

The Company has non-contributory defined benefit pension plans covering substantially all salaried and hourly employees. These plans were amended as of April 30, 2005, no further benefits have been, or will be, earned under the plans, subsequent to the amendment date, and no additional participants will be added to the plans. Contributions of $402,000 were paidThe Company did not make any contributions to the plans during the ninethree months ended JanuaryJuly 31, 2012, and2012. The Company expects to make contributions in the Company does not expect any contributions to be paidamount of $1.0 million to the plans during the remainder of thein fiscal year.year 2013. Contributions of $719,000$402,000 were made during the ninethree months ended JanuaryJuly 31, 2011.

Pension expense consisted of the following (in thousands):

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F.E.Earnings Per Share

Basic earnings per share is based on the weighted average number of common shares outstanding during the three and nine month periods.period. Diluted earnings per share reflects the assumed exercise and conversion of outstanding options under the Company’s stock option plans, except when options have an anti-dilutive effect. Options to purchase shares of 308,800237,675 and 265,300 were not included in the computation of diluted earnings per share for the three and nine month periods ended JanuaryJuly 31, 2012 because the effect would be anti-dilutive as a result of the reported net losses. Options to purchase shares of 119,600 were not included in the computation of diluted earnings per share for the three and nine month periods ended January 31, 2011,201, respectively, because the option exercise prices were greater than the average market price of the common shares at that date, and accordingly, such options would have an antidilutive effect.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The Company’s 20112012 Annual Report to Stockholders contains management’s discussion and analysis of financial condition and results of operations at and for the year ended April 30, 2011.2012. The following discussion and analysis describes material changes in the Company’s financial condition since April 30, 2011.2012. The analysis of results of operations compares the three and nine months ended JanuaryJuly 31, 2012 with the comparable period of the prior year.

Results of Operations

Sales for the three months ended JanuaryJuly 31, 2012 were $21,574,000, a decrease of 4.4%$26,683,000, an increase from sales of $22,568,000$26,321,000 in the comparable period of the prior year. Sales from Domestic Operations were $17,142,000,$22,629,000, down from $19,108,000sales of $23,396,000 in the comparable period of the prior year. The decrease was primarily duelower domestic sales dollars were expected as part of a strategy underway by the Company to a continuing declinesell more laboratory projects through its strengthened and expanded dealer network. This resulted in orders for publicly-funded K-12 education projects, primarily wood furniture, and lowerincreased sales of technical furniture products.manufactured products, but lower overall sales, as the dealers provided the related project management, installation, and other service activities, which are typically less profitable for the Company. Sales from International Operations were $4,432,000,$4,054,000, up from sales of $3,460,000$2,925,000 in the third quarter last year. Sales benefited from the beginning of shipments for a large international project in the order backlog. Additional international sales of $720,000 for products manufactured late in the quarter were not recorded as a sale because the customer failed to secure shipping containers and take deliverycomparable period of the products.prior year. The Company continues to have a strong backlog of international orders, including a large project that has experienced a lengthy construction delayincrease was primarily due to extraordinary building construction complications.the Company’s strengthened and expanded international dealer network.

The order backlog was $77.1$86.7 million at JanuaryJuly 31, 2012, as compared to $65.7$86.2 million at April 30, 20112012 and $68.2$69.7 million at JanuaryJuly 31, 2011.

Sales for the nine months ended January 31, 2012 were $73,857,000, up 1.1% from sales of $73,051,000 in the same period last year. Domestic Operations sales were $64,364,000, up from sales of $62,324,000 in the same period last year. International Operation sales were $9,493,000, down from sales of $10,727,000 in the same period last year.

The gross profit margin for the three months ended JanuaryJuly 31, 2012 was 17.5%19.6% of sales, as compared to 18.4% of sales in the comparable quarter of the prior year. The gross profit margin for the nine months ended January 31, 2012 was 16.0% of sales, as compared to 20.0%15.9% of sales in the comparable period of the prior year. The decreasesincrease in the gross profit margin forpercentages was primarily due to a favorable product mix in the current year periods were due to the combinationperiod resulting from increased sales of lower selling pricesmanufactured products and higher costs paid for raw materials, particularly steeldecreased sales of less profitable project management, installation, and epoxy resin.other service activities.

Operating expenses for the three months ended JanuaryJuly 31, 2012 were $3,990,000,$4,138,000, or 18.5%15.5% of sales, as compared to $4,007,000,$3,955,000, or 17.8%15.0% of sales, in the comparable period of the prior year. OperatingThe increase in expenses for the nine months ended January 31, 2012 were $11,950,000, or 16.2% of sales, as compared to $11,953,000, or 16.4% of sales in the comparable period of the prior year. Expenses for both periods of the current year were relatively flat withperiod was primarily due to an increase in expense of $112,000 related to the comparable periods of the prior year, as higher operating expenses at International Operations were offset by lower operating expenses at Domestic Operations.Company’s frozen pension plans.

Interest expense was $110,000 and $333,000 for the three and nine months ended January 31, 2012, respectively, as compared to interest income of $17,000 and interest expense of $105,000 for the comparable periods of the prior year. The increases in interest expense for the current year periods resulted primarily from higher levels of borrowings.

Other income was $193,000 and $228,000 for the three months and nine months ended January 31, 2012, respectively, as compared to $1,000 and none for the comparable periods of the prior year. Both periods of the current year include income of $156,000 related to a property insurance settlement.

An income tax benefit of $170,000 and $237,000 was recorded for the three months and nine months ended January 31, 2012, respectively, as compared to income tax expense of $49,000 and $792,000 recorded for the comparable periods of the prior year. The effective tax rates for the three and nine months of the current year were 125% and 94%, respectively. The unusually high effective tax rates for the current year periods resulted from the combination of federal and state income tax credits and reported net losses. The effective tax rates for the three and nine months comparable periods of the prior year were 28% and 31%, respectively. The effective rates for the prior year periods were lower than the statutory rate due to the favorable impact of lower tax rates for the Company’s international subsidiaries and the impact of state and federal tax credits.

Net earnings attributable to the noncontrolling interests reduced net earnings by $156,000$114,000 for the three months ended JanuaryJuly 31, 2012, as compared to a reduction of net earnings of $39,000$95,000 for the comparable period of the prior year. Net earnings were reduced by $211,000 and $131,000The increase for the ninecurrent year period resulted from slightly higher borrowing interest rates in the current year period.

Income tax expense of $371,000 was recorded for the three months ended JanuaryJuly 31, 2012, as compared to income tax expense of $29,000 recorded for the comparable period of the prior year. The effective tax rate was 35.0% for the three months ended July 31, 2012, and 2011, respectively. was 21.2% for the comparable period of the prior year. The higher effective tax rate for the current year period resulted primarily from a much lower ratio of pretax earnings in the current period attributable to subsidiaries located in geographic locations with lower income tax rates.

Noncontrolling interests relaterelated to the Company’s two subsidiaries that are not 100% owned by the Company. The increases in the current year periods resulted from increasedCompany reduced net earnings of the two subsidiaries over the comparable periods of the prior year.

A net loss of $122,000, or $0.05 per diluted share, was reportedby $54,000 for the three months ended JanuaryJuly 31, 2012, as compared to neta reduction of $86,000 for the comparable period of the prior year. The decrease in the current year period was directly related to lower earnings of $86,000, or $0.03 per diluted share,the Company’s two subsidiaries in the prior year period. A net loss of $225,000,current year.

Net earnings were $634,000, or $0.09 per diluted share, was reported for the nine months ended January 31, 2012, compared to net earnings of $1,598,000, or $0.62$0.25 per diluted share, for the samethree months ended July 31, 2012. This compares to net earnings of $22,000, or $0.01 per diluted share, for the comparable period lastof the prior year.

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Liquidity and Capital Resources

Historically, the Company’s principal sources of liquidity have been funds generated from operations, supplemented as needed by short-term borrowings under the Company’s revolving credit facility. Additionally, certain machinery and equipment are financed from time to time by non-cancellable operating leases or capital leases. The Company believes that these sources will be sufficient to support ongoing business requirements, including capital expenditures through the current fiscal year.

The Company had working capital of $21,487,000$24,037,000 at JanuaryJuly 31, 2012 compared to $22,115,000$23,358,000 at April 30, 2011.2012. The ratio of current assets to current liabilities was 2.2-to-1.0 at JanuaryJuly 31, 2012 compared to 2.1-to-1.0 atand April 30, 2011.2012. At JanuaryJuly 31, 2012, advances of $6,401,000$6,501,000 were outstanding under the Company’s $15,000,000 bank revolving credit facility, as compared to advances of $6,588,000$6,816,000 outstanding as of April 30, 2011. Total bank borrowings and capital lease obligations were $10,176,000 at January 31, 2012, as compared to $10,574,000 at April 30, 2011.2012.

The Company’s operations provided cash of $4,309,000$2,730,000 during the ninethree months ended JanuaryJuly 31, 2012. Cash was primarily provided from earnings, a decrease in accounts receivable of $7,255,000 which was partially offset by$677,000 and an increase in inventory of $1,296,000 and a decrease in accounts payable and other accrued expenses of $2,561,000.$768,000. The Company’s operations providedused cash of $6,135,000$887,000 during the ninethree months ended JanuaryJuly 31, 2011, withas cash primarily provided from earnings was offset by a decrease of $1,315,000 in accounts receivable of $5,094,000payable and earnings, which were partially offset by an increase in inventory of $2,171,000.other accrued expenses.

During the ninethree months ended JanuaryJuly 31, 2012, net cash of $1,326,000$383,000 was used in investing activities, primarily for capital expenditures. This compares to the use of $4,698,000$659,000 used for investing activities induring the comparable period of the prior year, primarily for capital expenditures related to the expansion of the Company’s Statesville, North Carolina manufacturing facilities.three months ended July 31, 2011.

The Company’s financing activities used cash of $1,171,000$612,000 during the ninethree months ended JanuaryJuly 31, 2012, primarily for cash dividends of $773,000 paid to stockholders, repayment of short-term borrowings of $187,000,$315,000 and payments on long-term debt of $150,000. Financing activities used cash of $1,062,000 in the same period of the prior year, primarily for cash dividends of $772,000$258,000 paid to stockholders and repaymentstockholders. Financing activities provided cash of $1,756,000 during the three months ended July 31, 2011, primarily from an increase in short-term borrowings of $4,176,000,$2,084,000, partially offset by $4,000,000cash dividends of proceeds from new long-term debt. The proceeds of the term loan were used primarily$258,000 paid to fund the expansion of the Company’s Statesville, North Carolina manufacturing facilities.stockholders.

Outlook

The Company’s ability to predict future demand for its products continues to be limited given among other general economic factors affecting the Company and its markets, the Company’s role as subcontractor or supplier to dealers for subcontractors, andsubcontractors. Demand for the fact that demand for itsCompany’s products is also dependent upon the number of laboratory construction projects planned and/or current progress in projects already under construction. Customer changesThe Company’s earnings are also impacted by increased costs of raw materials, including stainless steel, wood, and epoxy resin, and whether the Company is able to increase product designsprices to customers in amounts that correspond to such increases without materially and adversely affecting sales. Additionally, since prices are normally quoted on a firm basis in the industry, the Company bears the burden of possible increases in labor and material costs between the quotation of an order and delivery dates for orders mayof a product. The Company is also delay the start of manufacturing and shipment of orders, which in return may impactunable to predict the timing and strength of sales revenuethe global economic recovery and increase manufacturing costs.

Regardingits short-term and long-term impact on its operations and the short-term, the Company’s expectations are that the on-going economic slowdownmarkets in the United States will continue to adversely impact the domestic demand for the Company’s products, particularly wood furniture. However, opportunities in the international laboratory marketplace are expected to continue to improve. The Company expects to benefit from lower operating costs related to recent headcount reductions and on-going cost savings initiatives at its Statesville location. It is uncertain whether the recent significant rise in the price of oil will result in higher transportation costs and prices paid for petroleum-based raw materials.which it competes.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Certain statements in this report constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). 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, customer changes to product designs, customer changes to delivery dates, markets, products, services, and prices, as well as prices for certain raw materials and energy. The cautionary statements made pursuant to the Reform Act herein and elsewhere by the Company should not be construed as exhaustive. The Company cannot always predict what factors would cause actual results to differ materially from those indicated by the forward-looking statements. In addition, readers are urged to consider statements that include the terms “believes”, “belief”, “expects”, “plans”, “objectives”, “anticipates”, “intends” or the like to be uncertain and forward-looking. Over time, the Company’s actual results, performance or achievements will likely differ from the anticipated results, performance or achievements that are expressed or implied by the Company’s forward-looking statements, and such difference might be significant and harmful to stockholders’ interests. Many important factors that could cause such a difference are described under the caption “Risk Factors,” in Item 1A of the Company’s 20112012 Annual Report on Form 10-K.

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REVIEW BY INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

A review of the interim consolidated financial information included in this Quarterly Report on Form 10-Q for each of the three and nine month periods ended JanuaryJuly 31, 2012 and JanuaryJuly 31, 2011 has been performed by Cherry, Bekaert & Holland, L.L.P., the Company’s independent registered public accounting firm. Their report on the interim consolidated financial information follows.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We have reviewed the accompanying consolidated balance sheet of Kewaunee Scientific Corporation and its subsidiaries (the “Company”) as of JanuaryJuly 31, 2012, and the related consolidated statements of operations, and comprehensive income for the three month and nine monththree-month periods ended JanuaryJuly 31, 2012 and 2011 and the related consolidated statements of cash flows for the nine-monththree-month periods ended JanuaryJuly 31, 2012 and 2011. These interim consolidated financial statements are the responsibility of the Company’s management.

We conducted our reviews in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States), the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our reviews, we are not aware of any material modifications that should be made to the interim consolidated financial statements referred to above for them to be in conformity with accounting principles generally accepted in the United States of America.

We previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet as of April 30, 2011,2012, and the related consolidated statements of operations, comprehensive income and stockholders’ equity, and cash flows for the year then ended (not presented herein) and in our report dated July 15, 2011,13, 2012, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of April 30, 20112012 is fairly stated in all material respects in relation to the consolidated financial statement from which it has been derived.

March 8,September 13, 2012

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

There are no material changes to the disclosures made on this matter in the Company’s Annual Report on Form 10-K for the fiscal year ended April 30, 2011.2012.

Item 4. Controls and Procedures

(a) Evaluation of disclosure controls and procedures

An evaluation was performed under the supervision of, and with the participation of the Company’s management, including the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of JanuaryJuly 31, 2012. Based on that evaluation, the Company’s management, including the CEO and CFO, concluded that, as of JanuaryJuly 31, 2012, the Company’s disclosure controls and procedures were adequate and effective and designed to ensure that all material information required to be filed in this quarterly report is made known to them by others within the Company and its subsidiaries.

(b) Changes in internal controls

There was no significant change in the Company’s internal control over financial reporting that occurred during the most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II. OTHER INFORMATION

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SIGNATURE

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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