UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

For the quarterly period ended JulyOctober 31, 2012

or

For the transition period fromto

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 SeptemberDecember 10, 2012, the registrant had outstanding 2,587,2712,588,455 shares of Common Stock.

KEWAUNEE SCIENTIFIC CORPORATION

INDEX TO FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED JULYOCTOBER 31, 2012

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Part 1. Financial Information

Kewaunee Scientific Corporation

Consolidated Statements of Operations

(Unaudited)

(in thousands, except per share data)

See accompanying notes to consolidated financial statements.

Kewaunee Scientific Corporation

Consolidated Statements of Comprehensive Income

(Unaudited)

(in thousands)

See accompanying notes to consolidated financial statements.

Kewaunee Scientific Corporation

Consolidated Balance Sheets

(in thousands)

See accompanying notes to consolidated financial statements.

Kewaunee Scientific Corporation

Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

See accompanying notes to consolidated financial statements.

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 2012 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, 2012 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.Segment Information

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

		Domestic Operations				International Operations				Corporate				Total
Six months ended October 31, 2012
Revenues from external customers		$	48,312			$	9,556			$	—			$	57,868
Intersegment revenues			1,418				1,422				(2,840	)			—
Operating earnings (loss) before income taxes			3,322				1,030				(2,072	)			2,280
Six months ended October 31, 2011
Revenues from external customers		$	47,222			$	5,061			$	—			$	52,283
Intersegment revenues			401				266				(667	)			—
Operating earnings (loss) before income taxes			1,367				200				(1,682	)			(115	)

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. The Company did not make any contributionsContributions of $1.0 million were paid to the plans during the threesix months ended JulyOctober 31, 2012. The2012, and the Company expectsdoes not expect any contributions to make contributions in the amount of $1.0 millionbe paid to the plans induring the remainder of the fiscal year 2013.year. Contributions of $402,000 were made during the threesix months ended JulyOctober 31, 2011.2011 of the prior year.

Pension expense consisted of the following (in thousands):

E.Earnings Per Share

Basic earnings per share is based on the weighted average number of common shares outstanding during the three and six month period.periods. 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 158,400 shares of 237,675 and 265,300 were not included in the computation of diluted earnings per share for the three and six month periods ended JulyOctober 31, 2012, and 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. Options to purchase 325,300 shares were not included in the computation of diluted earnings per share for the three and six month periods ended October 31, 2011, because the effect would be anti-dilutive.

The Company’s 2012 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, 2012. The following discussion and analysis describes material changes in the Company’s financial condition since April 30, 2012. The analysis of results of operations compares the three and six months ended JulyOctober 31, 2012 with the comparable periodperiods of the prior year.

Results of Operations

Sales for the three months ended JulyOctober 31, 2012 were $26,683,000,$31,185,000, an increase of 20% from sales of $26,321,000$25,962,000 in the comparable period of the prior year. Sales from Domestic Operations were $22,629,000, down from sales of $23,396,000 in the comparable period of the prior year. The lower domestic sales dollars were expected as part of a strategy underway by the Company to sell more laboratory projects through its strengthened and expanded dealer network. This resulted in increased sales of 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 $4,054,000,$25,683,000, up from sales of $2,925,000$23,826,000 in the comparable period of the prior year. The increase in Domestic Operations was primarily due to the Company’s strengthened dealer network and expandedthe shipment of several large direct contracts during the quarter. Sales from International Operations were $5,502,000, up from $2,136,000 in the comparable period of the prior year. The increase in International Operations sales was primarily due to the shipment of several large international projects during the quarter.

Sales for the six months ended October 31, 2012 were $57,868,000, up 11% from sales of $52,283,000 in the same period last year. Domestic Operations sales were $48,312,000, up from sales of $47,222,000 in the same period last year. The increase in Domestic Operations sales was primarily attributable to the Company’s strengthened dealer network.network and the order backlog. International Operation sales were $9,556,000, up from sales of $5,061,000 in the same period last year. The increase in International Operations sales was primarily due to shipments of several large projects in the current year.

The order backlog was $86.7$90.8 million at JulyOctober 31, 2012, as compared to $86.2 million at April 30, 2012 and $69.7$78.0 million at JulyOctober 31, 2011.

The gross profit margin for the three months ended JulyOctober 31, 2012 was 19.6%16.8% of sales, as compared to 15.9%14.8% of sales in the comparable quarter of the prior year. The gross profit margin for the six months ended October 31, 2012 was 18.1% of sales, as compared to 15.4% of sales in the comparable period of the prior year. The increase in the gross profit margin percentages for the current year periods was primarily due to a more favorable product mix in the current year period resulting from increased sales of manufactured products and decreased sales of less profitable project management, installation,reduced manufacturing and other service activities.overhead costs.

Operating expenses for the three months ended JulyOctober 31, 2012 were $4,138,000,$4,013,000, or 15.5%12.9% of sales, as compared to $3,955,000,$4,005,000, or 15.0%15.4% of sales, in the comparable period of the prior year. The increaseOperating expenses for the six months ended October 31, 2012 were $8,151,000, or 14.1% of sales, as compared to $7,960,000, or 15.2% of sales in the comparable period of the prior year. Lower costs resulting from cost reduction actions initiated in the second half of the prior year substantially offset higher expenses inassociated with increased sales and increased pension expense of $109,000 and $221,000 for the three and six month periods of the current year, period was primarily due to an increase in expense of $112,000 related to the Company’s frozen pension plans.respectively.

Interest expense was $114,000$101,000 and $215,000 for the three and six months ended October 31, 2012, as compared to $128,000 and $223,000 for the comparable periods of the prior year. The decrease for the current year periods resulted from lower borrowing levels.

Income tax expense of $414,000 was recorded for the three months ended JulyOctober 31, 2012, as compared to $95,000income tax benefit of $96,000 recorded for the comparable period of the prior year. The increase for the current year period resulted from slightly higher borrowing interest rates in the current year period.

IncomeAn income tax expense of $371,000$785,000 was recorded for the threesix months ended JulyOctober 31, 2012, as compared to an income tax expensebenefit of $29,000$67,000 recorded for the comparable period of the prior year. The effective tax rate was 35.0%rates were 33.9% and 38.1% for the three months ended JulyOctober 31, 2012 and was 21.2%2011, respectively. The effective tax rates were 34.4% and 58.3% for the comparable period of the prior year.six months ended October 31, 2012 and 2011, respectively. The higher effective tax rate for the currentprior year period resulted primarilyperiods benefited from a much lower ratiothe favorable impact of pretax earnings in the current period attributable to subsidiaries located in geographic locations with lowerfederal and state income tax rates.credits combined with the reported net loss.

Noncontrolling interests related to the Company’s two subsidiaries that are not 100% owned by the Company reduced net earnings by $54,000$158,000 for the three months ended JulyOctober 31, 2012, as compared to a reductionan increase of $86,000net earnings by $31,000 for the comparable period of the prior year. Net earnings were reduced by $212,000 and $55,000 for the six months ended October 31, 2012 and 2011, respectively. The decreasechanges in the net earnings attributable to the noncontrolling interest in the current year period was directly relatedperiods were due to lowerthe change in earnings of the Company’s two subsidiaries in the current year.related periods.

Net earnings were $634,000,of $649,000, or $0.25 per diluted share, was reported for the three months ended JulyOctober 31, 2012. This compares2012, compared to a net loss of $125,000, or $0.05 per diluted share, in the prior year period. Net earnings of $22,000,$1,283,000, or $0.01$0.50 per diluted share, was reported for the six months ended October 31, 2012, compared to a net loss of $103,000, or $0.04 per diluted share, for the comparablesame period of the priorlast year.

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 in the current year, including capital expenditures through the current fiscal year.expenditures.

The Company had working capital of $24,037,000$24.2 million at JulyOctober 31, 2012, compared to $23,358,000$23.4 million at April 30, 2012. The ratio of current assets to current liabilities was 2.2-to-1.02.1-to-1.0 at JulyOctober 31, 2012, andcompared to 2.2-to-1.0 at April 30, 2012. At JulyOctober 31, 2012, advances of $6,501,000$5,694,000 were outstanding under the Company’s $15,000,000 bank revolving credit facility, as compared to advances of $6,816,000 outstanding as of April 30, 2012. Total bank borrowings and capital lease obligations were $9,261,000 at October 31, 2012, as compared to $10,519,000 at April 30, 2012.

The Company’s operations provided cash of $2,730,000$2,254,000 during the threesix months ended JulyOctober 31, 2012. Cash was primarily provided from earnings a decrease in accounts receivable of $677,000 and an increase in accounts payable and other accrued expenses of $768,000.$3,348,000, which was partially offset by an increase in accounts receivable of $1,647,000. The Company’s operations usedprovided cash of $887,000$1,926,000 during the threesix months ended JulyOctober 31, 2011, aswith cash primarily provided from earnings wasa decrease in accounts receivable of $3,851,000, partially offset by a decrease of $1,315,000 in accounts payable and other accrued expenses.expenses of $2,475,000.

During the threesix months ended JulyOctober 31, 2012, net cash of $383,000$664,000 was used in investing activities, primarily for capital expenditures. This compares to $659,000 usedthe use of $1,074,000 for investing activities duringin the three months ended July 31, 2011.comparable period of the prior year for capital expenditures of $751,000 and an increase in restricted cash of $323,000.

The Company’s financing activities used cash of $612,000$1,847,000 during the threesix months ended JulyOctober 31, 2012, primarily for repayment of short-term borrowings of $315,000$1,122,000, cash dividends of $517,000 paid to stockholders, and cash dividends of $258,000$139,000 paid to stockholders.minority interest holders. Financing activities provided cash of $1,756,000 during$82,000 in the three months ended July 31, 2011,same period of the prior year, primarily from an increase in$738,000 received from short-term borrowings, of $2,084,000, partially offset by cash dividends paid of $258,000 paid to stockholders.$516,000.

Outlook

The Company’s ability to predict future demand for its products continues to be limited given its role as subcontractor or supplier to dealers for subcontractors. Demand for the Company’s products is also dependent upon the number of laboratory construction projects planned and/or current progress in projects already under construction. The 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 prices 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 of a product. The Company is also unable to predict the timing and strength of the global economic recovery and its short-term and long-term impact on its operations and the markets in 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 2012 Annual Report on Form 10-K.

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 six month periods ended JulyOctober 31, 2012 and JulyOctober 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.

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 JulyOctober 31, 2012, the related consolidated statements of operations, and comprehensive income for the three-month and six-month periods ended JulyOctober 31, 2012 and 2011 and the related consolidated statements of cash flows for the three-monthsix-month periods ended JulyOctober 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, 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 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, 2012 is fairly stated in all material respects in relation to the consolidated financial statement from which it has been derived.

September 13,December 12, 2012

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, 2012.

(a) Evaluation of disclosure controls and procedures

An evaluation was performed under the supervision 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 JulyOctober 31, 2012. Based on that evaluation, the Company’s management, including the CEO and CFO, concluded that, as of JulyOctober 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.

PART II. OTHER INFORMATION

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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