UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 10-Q

 

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended JanuaryJuly 31, 2017

or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                    to                    

Commission file number 0-5286

 

 

KEWAUNEE SCIENTIFIC CORPORATION

(Exact name of registrant as specified in its charter)

 

 

 

Delaware 38-0715562

(State or other jurisdiction of

incorporation or organization)

 

(IRS Employer

Identification No.)

2700 West Front Street

Statesville, North Carolina

 28677-2927
(Address of principal executive offices) (Zip Code)

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  ☒    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  ☒    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, or an emerging growth company. See definitionthe definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer   Accelerated filer 
Non-accelerated filer ☐  (Do not check if a smaller reporting company)  Smaller reporting company 
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

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

As of March 6,September 5, 2017, the registrant had outstanding 2,711,9532,713,817 shares of Common Stock.

 

 

 


KEWAUNEE SCIENTIFIC CORPORATION

INDEX TO FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED JANUARYJULY 31, 2017

 

      Page Number 

PART I. FINANCIAL INFORMATION

Item 1.

  Financial Statements  
  

Consolidated Statements of Operations (unaudited)
– Three and nine months ended JanuaryJuly 31, 2017 and 2016

   1 
  

Consolidated Statements of Comprehensive Income (unaudited)
– Three and nine months ended JanuaryJuly 31, 2017 and 2016

   2 
  

Consolidated Statement of Stockholders’ Equity (unaudited)
NineThree months ended JanuaryJuly 31, 2017

   3 
  

Consolidated Balance Sheets
JanuaryJuly 31, 2017 (unaudited) and April 30, 20162017

   4 
  

Consolidated Statements of Cash Flows (unaudited)
NineThree months ended JanuaryJuly 31, 2017 and 2016

   5 
  

Notes to Consolidated Financial Statements

   6 

Item 2.

  Management’s Discussion and Analysis of Financial Condition and Results of Operations   9 

Item 3.

  Quantitative and Qualitative Disclosures About Market Risk   11 

Item 4.

  Controls and Procedures   11 

PART II. OTHER INFORMATION

Item 6.

  Exhibits   12 

SIGNATURE

   13 

 

i


Part 1. Financial Information

Item 1. Financial Statements

Item 1.Financial Statements

Kewaunee Scientific Corporation

Consolidated Statements of Operations

(Unaudited)

(in thousands, except per share amounts)data)

 

  Three months ended
January 31
 Nine months ended
January 31
   Three months ended
July 31
 
  2017 2016 2017 2016   2017 2016 

Net sales

  $30,371  $32,410  $103,979  $94,536 

Net Sales

  $33,881  $37,279 

Costs of products sold

   25,339  26,922  84,704  77,673    27,060  30,140 
  

 

  

 

  

 

  

 

   

 

  

 

 

Gross profit

   5,032  5,488  19,275  16,863    6,821  7,139 

Operating expenses

   4,590  4,441  14,484  13,163    5,133  5,078 
  

 

  

 

  

 

  

 

   

 

  

 

 

Operating earnings

   442  1,047  4,791  3,700    1,688  2,061 

Other income

   120  109  358  296    168  119 

Interest expense

   (71 (83 (229 (236   (59 (80
  

 

  

 

  

 

  

 

   

 

  

 

 

Earnings before income taxes

   491  1,073  4,920  3,760    1,797  2,100 

Income tax expense

   133  225  1,695  1,242    605  770 
  

 

  

 

  

 

  

 

   

 

  

 

 

Net earnings

   358  848  3,225  2,518    1,192  1,330 

Less: net earnings attributable to the noncontrolling interest

   17  18  98  53    44  30 
  

 

  

 

  

 

  

 

   

 

  

 

 

Net earnings attributable to Kewaunee Scientific Corporation

  $341  $830  $3,127  $2,465   $1,148  $1,300 
  

 

  

 

  

 

  

 

   

 

  

 

 

Net earnings per share attributable to Kewaunee Scientific Corporation stockholders

        

Basic

  $0.13  $0.31  $1.16  $0.93   $0.42  $0.48 

Diluted

  $0.13  $0.31  $1.15  $0.92   $0.42  $0.48 

Weighted average number of common shares outstanding

        

Basic

   2,711  2,682  2,703  2,661    2,712  2,693 

Diluted

   2,734  2,699  2,724  2,683    2,755  2,707 

See accompanying notes to consolidated financial statements.

1


Kewaunee Scientific Corporation

Consolidated Statements of Comprehensive Income

(Unaudited)

(in thousands)

 

  Three months ended
January 31
 Nine months ended
January 31
   Three months ended
July 31
 
  2017 2016 2017 2016   2017   2016 

Net earnings

  $358  $848  $3,225  $2,518   $1,192   $1,330 
  

 

  

 

  

 

  

 

   

 

   

 

 

Other comprehensive income (loss), net of tax:

        

Foreign currency translation adjustments

   (63 (221 (232 (435   75    (26

Change in fair value of cash flow hedge

   35   —   53  11 

Change in fair value of cash flow hedges

   8    4 
  

 

  

 

  

 

  

 

   

 

   

 

 

Other comprehensive income (loss)

   (28 (221 (179 (424   83    (22
  

 

  

 

  

 

  

 

   

 

   

 

 

Comprehensive income, net of tax

   330  627  3,046  2,094    1,275    1,308 

Less: comprehensive income attributable to the noncontrolling interest

   17  18  98  53    44    30 
  

 

  

 

  

 

  

 

   

 

   

 

 

Comprehensive income attributable to Kewaunee Scientific Corporation

  $313  $609  $2,948  $2,041   $1,231   $1,278 
  

 

  

 

  

 

  

 

   

 

   

 

 

See accompanying notes to consolidated financial statements.

2


Kewaunee Scientific Corporation

Consolidated Statement of Stockholders’ Equity

(Unaudited)

(in thousands, except sharesshare and per share amounts)

 

   Common
Stock
   Additional
Paid-in
Capital
   Treasury
Stock
  Retained
Earnings
  Accumulated
Other
Comprehensive
Income (Loss)
  Total
Stockholders’
Equity
 

Balance at April 30, 2016

  $6,720   $2,375   $(53 $36,826  $(7,626 $38,242 

Net earnings attributable to Kewaunee Scientific Corporation

   —     —     —    3,127   —    3,127 

Other comprehensive loss

   —     —     —    —    (179  (179

Cash dividends paid, $0.43 per share

   —     —     —    (1,163  —    (1,163

Stock options exercised, 48,650 shares

   67    74    —    —    —    141 

Stock based compensation

   —     150    —    —    —    150 
  

 

 

   

 

 

   

 

 

  

 

 

  

 

 

  

 

 

 

Balance at January 31, 2017

  $6,787   $2,599   $(53 $38,790  $(7,805 $40,318 
  

 

 

   

 

 

   

 

 

  

 

 

  

 

 

  

 

 

 
   Common
Stock
   Additional
Paid-in
Capital
   Treasury
Stock
  Retained
Earnings
  Accumulated
Other
Comprehensive
Income (Loss)
  Total
Stockholders’
Equity
 

Balance at April 30, 2017

  $6,789   $2,695   $(53 $39,771  $(6,319 $42,883 

Net earnings attributable to Kewaunee Scientific Corporation

   —      —      —     1,148   —     1,148 

Other comprehensive income

   —      —      —     —     83   83 

Cash dividends paid, $0.15 per share

   —      —      —     (406  —     (406

Stock options exercised, 500 shares

   1    8    —     —     —     9 

Stock based compensation

   —      52    —     —     —     52 
  

 

 

   

 

 

   

 

 

  

 

 

  

 

 

  

 

 

 

Balance at July 31, 2017

  $6,790   $2,755   $(53 $40,513  $(6,236 $43,769 
  

 

 

   

 

 

   

 

 

  

 

 

  

 

 

  

 

 

 

See accompanying notes to consolidated financial statements.

3


Kewaunee Scientific Corporation

Consolidated Balance Sheets

(in thousands, except per share amounts)

 

  January 31,
2017
 April 30,
2016
   July 31,
2017
 April 30,
2017
 
  (Unaudited)     (Unaudited)   

Assets

      

Current Assets:

      

Cash and cash equivalents

  $8,254  $5,222   $12,021  $12,506 

Restricted cash

   1,438  1,567    1,471  1,435 

Receivables, less allowance; $143; $202, on each respective date

   25,787  27,835 

Receivables, less allowance: $193, $191, on each respective date

   23,635  29,889 

Inventories

   15,731  15,626    17,001  14,935 

Prepaid expenses and other current assets

   1,004  707    1,556  1,047 
  

 

  

 

   

 

  

 

 

Total Current Assets

   52,214  50,957    55,684  59,812 

Property, plant and equipment, at cost

   51,797  49,928    51,998  51,568 

Accumulated depreciation

   (37,449 (35,810   (38,222 (37,541
  

 

  

 

   

 

  

 

 

Net Property, Plant and Equipment

   14,348  14,118    13,776  14,027 

Deferred income taxes

   3,404  3,392    3,113  3,158 

Other

   3,679  3,938    3,991  3,919 
  

 

  

 

   

 

  

 

 

Total Other Assets

   7,083  7,330    7,104  7,077 
  

 

  

 

   

 

  

 

 

Total Assets

  $73,645  $72,405   $76,564  $80,916 
  

 

  

 

   

 

  

 

 

Liabilities and Equity

      

Current Liabilities:

      

Short-term borrowings and interest rate swaps

  $4,679  $3,818   $3,539  $3,591 

Current portion of long-term debt

   421  421    1,105  918 

Accounts payable

   10,105  11,722    11,933  11,995 

Employee compensation and amounts withheld

   2,041  2,333    1,776  2,765 

Deferred revenue

   548  785    773  5,806 

Other accrued expenses

   2,591  1,871    2,487  1,852 
  

 

  

 

   

 

  

 

 

Total Current Liabilities

   20,385  20,950    21,613  26,927 

Long-term debt

   3,033  3,349    2,139  2,431 

Accrued pension and deferred compensation costs

   9,510  9,554    8,625  8,301 
  

 

  

 

   

 

  

 

 

Total Liabilities

   32,928  33,853    32,377  37,659 

Commitments and Contingencies

      

Stockholders’ Equity:

   

Common Stock, $2.50 par value, Authorized – 5,000 shares; Issued – 2,715; 2,688 shares; – Outstanding – 2,712 shares; 2,685 shares, on each respective date

   6,787  6,720 

Equity:

   

Common Stock, $2.50 par value, Authorized – 5,000 shares; Issued – 2,716 shares; 2,715 shares; Outstanding – 2,713 shares; 2,712 shares, on each respective date

   6,790  6,789 

Additional paid-in-capital

   2,599  2,375    2,755  2,695 

Retained earnings

   38,790  36,826    40,513  39,771 

Accumulated other comprehensive loss

   (7,805 (7,626   (6,236 (6,319

Common stock in treasury, at cost, 3 shares, on each date

   (53 (53   (53 (53
  

 

  

 

   

 

  

 

 

Total Kewaunee Scientific Corporation Stockholders’ Equity

   40,318  38,242    43,769  42,883 

Noncontrolling interest

   399  310    418  374 
  

 

  

 

   

 

  

 

 

Total Equity

   40,717  38,552    44,187  43,257 
  

 

  

 

   

 

  

 

 

Total Liabilities and Equity

  $73,645  $72,405   $76,564  $80,916 
  

 

  

 

   

 

  

 

 

See accompanying notes to consolidated financial statements.

4


Kewaunee Scientific Corporation

Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

 

  Nine months ended
January 31
   Three months ended
July 31
 
  2017 2016   2017 2016 

Cash flows from operating activities:

      

Net earnings

  $3,225  $2,518   $1,192  $1,330 

Adjustments to reconcile net earnings to net cash provided by operating activities:

   

Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:

   

Depreciation

   1,960  1,850    686  647 

Bad debt provision

   (42 7    6  15 

Stock based compensation expense

   150  146    52  47 

(Expense) benefit for deferred income tax expense

   (12 40 

Benefit for deferred income tax expense

   45  (39

Change in assets and liabilities:

      

Decrease (increase) in receivables

   2,090  (310   6,248  (2,697

(Increase) in inventories

   (105 (3,409

Increase in inventories

   (2,066 (1,159

(Decrease) increase in accounts payable and other accrued expenses

   (1,189 1,663    (416 1,995 

(Decrease) increase in deferred revenue

   (237 467    (5,033 26 

Other, net

   11  164    (184 (345
  

 

  

 

   

 

  

 

 

Net cash provided by operating activities

   5,851  3,136 

Net cash provided by (used in) operating activities

   530  (180

Cash flows from investing activities:

      

Capital expenditures

   (2,190 (1,708   (435 (1,056

Decrease in restricted cash

   129  832 

Increase in restricted cash

   (36 (59
  

 

  

 

   

 

  

 

 

Net cash used in investing activities

   (2,061 (876   (471 (1,115

Cash flows from financing activities:

      

Dividends paid

   (1,163 (1,012   (406 (350

Dividends paid to noncontrolling interest in subsidiaries

   —   (75

Increase in short-term borrowings and interest rate swaps

   861  583 

Proceeds from short-term borrowings

   14,697  15,840 

Repayments on short-term borrowings

   (14,749 (12,700

Payments on long-term debt

   (316 (316   (105 (105

Payment toward purchase of noncontrolling interest in subsidiary

   —   (888

Net proceeds from exercise of stock options (including tax benefit)

   141  459 

Net proceeds from exercise of stock options

   9  103 
  

 

  

 

   

 

  

 

 

Net cash used in financing activities

   (477 (1,249

Net cash (used in) provided by financing activities

   (554 2,788 

Effect of exchange rate changes on cash

   (281 (346   10  (4
  

 

  

 

   

 

  

 

 

Increase in cash and cash equivalents

   3,032  665 

Increase (decrease) in cash and cash equivalents

   (485 1,489 

Cash and cash equivalents, beginning of period

   5,222  3,044    12,506  5,222 
  

 

  

 

   

 

  

 

 

Cash and cash equivalents, end of period

  $8,254  $3,709   $12,021  $6,711 
  

 

  

 

   

 

  

 

 

See accompanying notes to consolidated financial statements.

5


Kewaunee Scientific Corporation

Notes to Consolidated Financial Statements

(unaudited)

A.Financial Information

The unaudited interim consolidated financial statements of Kewaunee Scientific Corporation (the “Company”) 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 20162017 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 consolidated balance sheet as of April 30, 20162017 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.Revenue Recognition

Product sales and installation revenue are recognized when all of the following criteria have been met: (1) products have been shipped, or customers have purchased and accepted title to the goods, but because of construction delays, have requested that the Company temporarily store the finished goods on the customer’s behalf; service revenue for installation of products sold is recognized as the installation services are performed, (2) persuasive evidence of an arrangement exists, (3) the price to the customer is fixed, and (4) collectability is reasonably assured. The Company utilizes either the percentage of completion or completed contract method based on facts and circumstances of individual contracts.

Deferred revenue consists of customer deposits and advance billings of the Company’s products where sales have not yet been recognized. Shipping and handling costs are included in cost of product sales. Because of the nature and quality of the Company’s products, any warranty issues are determined in a relatively short period after the sale and are infrequent in nature, and as such, warranty costs are immaterial to the Company’s consolidated financial position and results of operations and are expensed as incurred.

Product sales resulting from fixed-price construction contracts involve a signed contract for a fixed price to provide the Company’s laboratory furniture and fume hoods for a construction project. In these instances, the Company is usually in the role of a subcontractor, but in some cases may enter into a contract directly with the end-user of the products. Contract arrangements normally do not contain a general right of return relative to the delivered items. Product sales resulting from fixed-price construction contracts are generated from multiple-element arrangements that require separate units of accounting and estimates regarding the fair value of individual elements. The Company has determined that its multiple-element arrangements that qualify as separate units of accounting are (1) product sales and (2) installation services. There is objective and reliable evidence of fair value for both the product sales and installation services and allocation of arrangement consideration for each of these units is based on their relative fair values. Each of these elements represent individual units of accounting, as the delivered item has value to a customer on a stand-alone basis. The Company’s products are regularly sold on a stand-alone basis to customers which provides either best estimate of selling prices or vendor-specific objective evidence of fair value. The fair value of installation services is separately calculated using expected costs of installation services. Many times the value of installation services is calculated using price quotations from subcontractors to the Company who perform installation services on a stand-alone basis.

Product sales resulting from purchase orders involve a purchase order received by the Company from its dealers or stocking distributor. This category includes product sales for standard products, as well as products which require some customization. Any customization requirements are approved by the customer prior to manufacture of the customized product. Sales from purchase orders are recognized under the terms of the purchase order which generally are freight on board (“FOB”) shipping point and do not include rights of return. Accordingly, these sales are recognized at the time of shipment.

C.Derivative Financial Instruments

The Company records derivatives on the consolidated balance sheet at fair value and establishes criteria for designation and effectiveness of hedging relationships. The nature of the Company’s business activities involves the management of various financial and market risks, including those related to changes in interest rates. The Company does not enter into derivative instruments for speculative purposes. In May 2013, the Company entered into an interest rate swap agreement whereby the interest rate payable by the Company on $3,450,000 of outstanding long-term debt was effectively converted to a fixed interest rate of 4.875% for the period beginning May 1, 2013 and ending August 1, 2017. In May 2013, the Company entered into an interest rate swap agreement whereby the interest rate payable by the Company on $2,600,000 of outstanding long-term debt was effectively converted to a fixed interest rate of 4.37% for the period beginning August 1, 2017 and ending May 1, 2020. In May 2013, the Company entered into an interest rate swap agreement whereby the interest rate payable by the Company on $1,218,000 of outstanding long-term debt was effectively converted to a fixed interest rate of 3.07% for the period beginning November 3, 2014 and ending May 1, 2020. The Company entered into these interest rate swap arrangements to mitigate future interest rate risk associated with its long-term debt and has designated these as cash flow hedges.

D.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 39,200 shares were not included in the computation of diluted earnings per share for the three and nine month periodsperiod ended JanuaryJuly 31, 2017, because the option exercise prices were greater than the average market price of the common shares at that date,during the quarter, and accordingly, such options would have an antidilutive effect. Options to purchase 111,400110,000 shares were not included in the computation of diluted earnings per share for the three and nine month periodsperiod ended JanuaryJuly 31, 2016, because the effect would be anti-dilutive.

C.E.Inventories

Inventories consisted of the following (in thousands):

 

  January 31, 2017   April 30, 2016   July 31, 2017   April 30, 2017 

Finished products

  $3,568   $3,707   $4,419   $3,179 

Work in process

   2,101    1,889    1,941    1,950 

Raw materials

   10,062    10,030    10,641    9,806 
  

 

   

 

   

 

   

 

 
  $15,731   $15,626   $17,001   $14,935 
  

 

   

 

   

 

   

 

 

The Company uses the last-in, first-out (LIFO) method of valuing inventory for its domestic operations, which represents $14,272,000$14,527,000 of inventory at JanuaryJuly 31, 2017 and $13,373,000$12,730,000 at April 30, 2016.2017. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs, and are subject to the final year-end LIFO inventory valuation. The Company’s international subsidiaries’ investories were $2,474,000 at July 31, 2017 and $2,205,000, at April 30, 2017, measured using the first-in, first-out (“FIFO”) method at the lower of cost and net ralizable value.

D.6


F.Segment Information

The Company’s operations are classified into two business segments: Domestic and International. The Domestic business segment principally designs, manufactures, and installs scientific and technical furniture, including steel and wood laboratory cabinetry, fume hoods, laminate casework, flexible systems, worksurfaces, workstations, workbenches, and computer enclosures. The International business segment, which consists of the Company’s foreign subsidiaries, provides products and services, including facility design, detailed engineering, construction, and project management from the planning stage through testing and commissioning of laboratories. Intersegment transactions are recorded at normal profit margins. All intercompany balances and transactions have been eliminated. Certain corporate expenses shown below have not been allocated to the business segments.

The following table provides financial information by business segments for the three and nine months ended JanuaryJuly 31, 2017 and 2016 (in thousands):

 

  Domestic
Operations
   International
Operations
   Corporate   Total   Domestic   International   Corporate   Total 

Three months ended January 31, 2017

        

Three months ended July 31, 2017

        

Revenues from external customers

  $25,313   $5,058   $—    $30,371   $22,146   $11,735   $—    $33,881 

Intersegment revenues

   344    538    (882   —     4,085    868    (4,953   —  

Earnings (loss) before income taxes

   563    943    (1,015   491    1,816    1,370    (1,389   1,797 

Three months ended January 31, 2016

        

Three months ended July 31, 2016

        

Revenues from external customers

  $25,423   $6,987   $—    $32,410   $29,637   $7,642   $—    $37,279 

Intersegment revenues

   1,196    421    (1,617   —     866    1,135    (2,001   —  

Earnings (loss) before income taxes

   1,586    702    (1,215   1,073    2,573    817    (1,290   2,100 
  Domestic
Operations
   International
Operations
   Corporate   Total 

Nine months ended January 31, 2017

        

Revenues from external customers

  $83,161   $20,818   $—    $103,979 

Intersegment revenues

   3,781    2,936    (6,717   —  

Earnings (loss) before income taxes

   5,580    3,010    (3,670   4,920 

Nine months ended January 31, 2016

        

Revenues from external customers

  $76,017   $18,519   $—    $94,536 

Intersegment revenues

   1,642    1,694    (3,336   —  

Earnings (loss) before income taxes

   5,346    2,002    (3,588   3,760 

E.G.Defined Benefit Pension Plans

The Company has non-contributory defined benefit pension plans covering substantially all domestic salaried and hourly employees. These plans were amended as of April 30, 2005,2005; 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 $555,000 were paidThe Company did not make any contributions to the plans during the ninethree months ended JanuaryJuly 31, 2017 and the2016. The Company does not expect anyexpects to make contributions to be paidof $600,000 to the plans during fiscal year 2018. The Company assumed an expected long-term rate of return of 7.75% for the remainder ofperiod ended July 31, 2017 as compared to 8.0% for the fiscal year. Contributions of $64,000 were paid to the plans during the nine monthsperiod ended JanuaryJuly 31, 2016.

Pension expense consisted of the following (in thousands):

 

   Three months ended
January 31, 2017
   Three months ended
January 31, 2016
 

Service cost

  $-0-   $-0- 

Interest cost

   232    224 

Expected return on plan assets

   (311   (334

Recognition of net loss

   314    329 
  

 

 

   

 

 

 

Net periodic pension expense

  $235   $219 
  

 

 

   

 

 

 
   Nine months ended
January 31, 2017
   Nine months ended
January 31, 2016
 

Service cost

  $-0-   $-0- 

Interest cost

   695    684 

Expected return on plan assets

   (932   (1,022

Recognition of net loss

   942    917 
  

 

 

   

 

 

 

Net periodic pension expense

  $705   $579 
  

 

 

   

 

 

 

   Three months ended
July 31, 2017
   Three months ended
July 31, 2016
 

Service cost

  $-0-   $-0- 

Interest cost

   219    231 

Expected return on plan assets

   (339   (310

Recognition of net loss

   283    310 
  

 

 

   

 

 

 

Net periodic pension expense

  $163   $231 
  

 

 

   

 

 

 

F.H.Fair Value of Financial Instruments

The Company’s financial instruments consist primarily of cash and equivalents, mutual funds, cash surrender value of life insurance policies, term loans and short-term borrowings. The carrying valuesvalue of these assets and liabilities approximate their fair value. The following tables summarize the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring and nonrecurring basis as of JanuaryJuly 31, 2017 and April 30, 20162017 (in thousands):

 

  January 31, 2017   July 31, 2017 

Financial Assets

  Level 1   Level 2   Total   Level 1   Level 2   Total 

Trading securities held in non-qualified compensation plans (1)

  $3,608   $—    $3,608   $3,898   $—    $3,898 

Cash surrender value of life insurance policies (1)

   —     62    62    —     75    75 
  

 

   

 

   

 

   

 

   

 

   

 

 

Total

  $3,608   $62   $3,670   $3,898   $75   $3,973 
  

 

   

 

   

 

   

 

   

 

   

 

 

Financial Liabilities

            

Non-qualified compensation plans (2)

  $—    $4,021   $4,021   $—    $4,348   $4,348 

Interest rate swap derivatives

   —     80    80    —     49    49 
  

 

   

 

   

 

   

 

   

 

   

 

 

Total

  $—    $4,101   $4,101   $—    $4,397   $4,397 
  

 

   

 

   

 

   

 

   

 

   

 

 
  April 30, 2016 

Financial Assets

  Level 1   Level 2   Total 

Trading securities held in non-qualified compensation plans (1)

  $3,867   $—    $3,867 

Cash surrender value of life insurance policies (1)

   —     62    62 
  

 

   

 

   

 

 

Total

  $3,867   $62   $3,929 
  

 

   

 

   

 

 

Financial Liabilities

      

Non-qualified compensation plans (2)

  $—    $4,215   $4,215 

Interest rate swap derivatives

   —     166    166 
  

 

   

 

   

 

 

Total

  $—    $4,381   $4,381 
  

 

   

 

   

 

 

7


   April 30, 2017 

Financial Assets

  Level 1   Level 2   Total 

Trading securities held in non-qualified compensation plans (1)

  $3,748   $—    $3,748 

Cash surrender value of life insurance policies (1)

   —     75    75 
  

 

 

   

 

 

   

 

 

 

Total

  $3,748   $75   $3,823 
  

 

 

   

 

 

   

 

 

 

Financial Liabilities

      

Non-qualified compensation plans (2)

  $—    $4,186   $4,186 

Interest rate swap derivatives

   —     62    62 
  

 

 

   

 

 

   

 

 

 

Total

  $—    $4,248   $4,248 
  

 

 

   

 

 

   

 

 

 

 

(1)The Company maintains two non-qualified compensation plans which include investment assets in a rabbi trust. These assets consist of marketable securities, which are valued using quoted market prices multiplied by the number of shares owned, and life insurance policies, which are valued at their cash surrender value.
(2)Plan liabilities are equal to the individual participants’ account balances and other earned retirement benefits.

G.I.Reclassifications

Certain 2016 amounts have been reclassified to conform to the 2017 presentation in the consolidated statements of cash flows. Such reclassifications had no impact on net earnings.

J.New Accounting Standards

In May 2014, the FASBFinancial Accounting Standards Board (“FASB”) issued ASU 2014-9,Accounting Standards Update 2014-09, “Revenue from Contracts with Customers (Topic 606)Customers” (“ASU 2014-09”). This update outlines a new comprehensive revenue recognition model that supersedes most current revenue recognition guidance and requires an entitycompanies to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, this guidance was amended deferringASU 2014-09 also requires additional disclosures about the nature, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The FASB has issued several updates and/or practical expedients to ASU 2014-09. ASU 2014-09 and the subsequent updates and/or practical expedients to the standard will be effective date to annual reporting periods beginning after December 15, 2017. Thefor the Company will adopt this standard induring the first quarter of our fiscal year 2019. The Company has2019 and we do not yet determinedplan to early adopt. ASU 2014-09 provides two methods of adopting the effect, if any, thatstandard: using either a full retrospective approach or modified retrospective approach. We expect to elect the adoptionmodified retrospective approach of thisadopting the standard. We have conducted a preliminary assessment of how ASU 2014-09 is likely to affect us, identifying the Company’s revenue streams and performance obligations. Our contracts with customers currently may be for single performance obligations or for multiple performance obligations. Based on our preliminary assessment, we do not believe the new standard materially changes our accounting policy for these types of performance obligations. We have also evaluated the impact the new standard will have on our existing policies, contracts, accounting processes, internal controls, reporting systems and disclosure processes and are in the process of identifying improvements and or enhancements that we will make to the aforementioned in preparing to comply with the new guidance. We continue to evaluate the implications of the new guidance and at this time do not believe the adoption of ASU 2014-09 will have a material impact on the Company’s consolidated financial position, or results of operations.operations, equity or cash flows.

In NovemberJuly 2015, the Financial Accounting Standards Board (“FASB”)FASB issued ASU 2015-17, “Income Taxes (Topic 740)2015-11, “InventoryBalance Sheet ClassificationSimplifying the Measurement of Deferred Taxes.Inventory.” This guidance eliminateschanges the requirementmeasurement principle for inventory from the lower of cost or market to separate deferred income tax liabilitiesthe lower of cost and assets into currentnet realizable value. Net realizable value is defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and noncurrent amounts in a classified statement of financial position. Instead, the update requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position.transportation. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption permitted prospectively or retrospectively. The Company early adopted this guidance prospectively beginning with the Consolidated Balance Sheet at April 30, 2016. Prior periods were not retrospectively adjusted.

In April 2015, the FASB issued ASU 2015-03, “Interest (Topic 835) – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs.” This guidance requires that debt issuance costs related to a recognized liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. The Company adopted this standard effective May 1, 2016.2017. The adoption of this standard did not have a significant impact on the Company’s consolidated financial position or results of operations.

In March 2016, the FASB issued ASU 2016-9, “Stock Compensation – Improvements to Employee Share-Based Payment Accounting.” This guidance simplifies various aspects related to how share-based payments are accounted for and presented in the financial statements. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company adopted this standard prospectively effective May 1, 2017. Prior periods were not retrospectively adjusted. The adoption of this standard did not have a significant impact on the Company’s consolidated financial position or results of operations.

8


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

The Company’s 20162017 Annual Report to Stockholders contains management’s discussion and analysis of financial condition and results of operations as of and for the year ended April 30, 2016.2017. The following discussion and analysis describes material changes in the Company’s financial condition since April 30, 2016.2017. The analysis of results of operations compares the three and nine months ended JanuaryJuly 31, 2017 with the comparable periodsperiod of the prior year.

Results of Operations

Sales for the three months ended JanuaryJuly 31, 2017 were $30,371,000,$33,881,000, a decrease of 6.3%9.1% from sales of $32,410,000$37,279,000 in the comparable period of the prior year. SalesDomestic sales were $22,146,000, down from Domestic Operations were $25,313,000, relatively unchanged from $25,423,000$29,637,000 in the comparable period of the prior year. Salesyear, due to the timing of customer demand within the Company’s order backlog. International sales were $11,735,000, up from International Operations were $5,058,000, down 27.6% from $6,987,000sales of $7,642,000 in the comparable period of the prior year. The decrease in internationalyear, as sales was due towere favorably impacted by shipments of a large Middle East order shipped induring the prior year period that did not repeat.

Sales for the nine months ended January 31, 2017 were $103,979,000, up 10.0% from sales of $94,536,000 in the same period last year. Domestic Operations sales for the nine-month period were $83,161,000, up 9.4% from sales of $76,017,000 in the same period last year. International Operations sales were $20,818,000, up 12.4% from sales of $18,519,000 in the same period last year.quarter.

The order backlog was $106.9$111.2 million at JanuaryJuly 31, 2017, as compared to $101.1$113.5 million at October 31, 2016April 30, 2017 and $95.2$86.2 million at JanuaryJuly 31, 2016.

The gross profit margin for the three months ended JanuaryJuly 31, 2017 was 16.6%20.1% of sales, as compared to 16.9%19.2% of sales in the comparable quarter of the prior year. The gross profit margin for the nine months ended January 31, 2017 was 18.5% of sales, as compared to 17.8% in the same period last year. The decrease in the gross profit margin percentage for the three month period ending January 31, 2017 was due to lower sales volume and unfavorable overhead absorption. The increase in the gross profit margin percentage for the current nine month period was primarily due to favorable operating leverage from higher volumes being produced during the first halfcontinued execution of the year.Company’s cost reduction and productivity improvement programs.

Operating expenses for the three months ended JanuaryJuly 31, 2017 were $4,590,000,$5,133,000, or 15.1%15.2% of sales, as compared to $4,441,000,$5,078,000, or 13.7%13.6% of sales, in the comparable period of the prior year. The increase in operating expenses for the three months ended JanuaryJuly 31, 2017 is related primarily to increases in corporate governance expenses of $160,000 and wages and benefitsincentive compensation of $195,000, pension expense of $16,000, professional services of $63,000, sales and marketing of $59,000 and an increase of $163,000 in operating expenses for the Company’s International operations,$73,000 partially offset by decreases in pension expense of bad debt expenses$69,000 and professional services of $48,000, incentive compensation of $148,000 and $154,000 of non-recurring expenses incurred in the comparable period of$94,000 when compared to the prior year.period.

Operating expensesInterest expense was $59,000 for the ninethree months ended JanuaryJuly 31, 2017, were $14,484,000, or 13.9% of sales, as compared to $13,163,000, or 13.9% of sales in$80,000 for the comparable period of the prior year. The increase in operating expenses for the nine months ended January 31, 2017 is related primarily to increases in wages and benefits of $514,000, incentive compensation of $210,000, pensionlower interest expense of $126,000, professional services of $380,000, sales and marketing of $216,000 and an increase of $395,000 in operating expenses for the Company’s International operations, partially offset by decreases of bad debt expenses of $49,000 and $678,000 of non-recurring expenses incurredresulted from lower borrowing levels in the comparable periodfirst three months of the prior year.

Interest expense was $71,000 and $229,000 for the three and nine months ended January 31, 2017, respectively,current year as compared to $83,000 and $236,000 for the comparable periods of the prior year. The decreases for the current year periods resulted primarily from lower borrowing levels.

Income tax expense of $133,000$605,000 was recorded for the three months ended JanuaryJuly 31, 2017, as compared to income tax expense of $225,000 recorded for the comparable period of the prior year. Income tax expense of $1,695,000 was recorded for the nine months ended January 31, 2017, as compared to income tax expense of $1,242,000$770,000 recorded for the comparable period of the prior year. The effective tax rate was 27.1%rates were 33.7% and 21.0%36.7% for the three-month periodsthree months ended JanuaryJuly 31, 2017 and 2016, respectively. The effective tax rates were 34.5% and 33.0% for the nine months ended January 31, 2017 and 2016, respectively. The lower effective tax ratesrate for the prior three and nine month periods was dueperiod reflects an unfavorable adjustment to tax expense attributable to the favorable impactdomestic tax consequences of the reinstatementearnings of the federal research and development tax credits.certain foreign subsidiaries.

Noncontrolling interests related to the Company’s subsidiary that is not 100% owned by the Company reduced net earnings by $17,000$44,000 for the three months ended JanuaryJuly 31, 2017, as compared to $18,000$30,000 for the comparable period of the prior year. Net earnings were reduced by $98,000 and $53,000 for the nine months ended January 31, 2017 and 2016, respectively. The changeschange in the amounts between each of these periods were directlynet earnings attributable to the noncontrolling interest in the current period was due to changes in earnings of the amounts of net income reported forsubsidiary in the Company’s one subsidiary that is not 100% owned by the Company.related period.

Net earnings of $341,000,$1,148,000, or $0.13$0.42 per diluted share, were reported for the three months ended JanuaryJuly 31, 2017, compared to net earnings of $830,000,$1,300,000, or $0.31$0.48 per diluted share, in the prior year period. Net earnings of $3,127,000, or $1.15 per diluted share, were reported for the nine months ended January 31, 2017, compared to net earnings of $2,465,000, or $0.92 per diluted share, for the same period last 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 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 fiscal year, including capital expenditures.

The Company had working capital of $31,829,000$34,071,000 at JanuaryJuly 31, 2017, compared to $30,007,000$32,885,000 at April 30, 2016.2017. The ratio of current assets to current liabilities was 2.6-to-1.0 at JanuaryJuly 31, 2017, compared to 2.4-to-1.02.2-to-1.0 at April 30, 2016.2017. At JanuaryJuly 31, 2017, advances of $4,540,000$3.4 million were outstanding under the Company’s bank revolving credit facility, compared to advances of $3,600,000$3.5 million outstanding as of April 30, 2016.2017. The Company had standby letters of credit outstanding of $4,210,000$4.2 million at JanuaryJuly 31, 2017 and April 30, 2016.2017. Amounts available under the $20 million revolving credit facility were $11.3$12.4 million and $12.2$12.3 million at JanuaryJuly 31, 2017 and April 30, 2016,2017, respectively. Total bank borrowings and interest rate swaps were $8,133,000$6,783,000 at JanuaryJuly 31, 2017, compared to $7,588,000$6,940,000 at April 30, 2016.2017.

The Company’s operations provided cash of $5,851,000$530,000 during the ninethree months ended JanuaryJuly 31, 2017. Cash was2017, with cash primarily provided from earnings and a decrease of $6,248,000 in receivables, of $2,090,000, partially offset by an increase in inventories of $2,066,000 and a decrease of $5,033,000 in deferred revenue. The Company’s operations used cash of $180,000 during the three months ended July 31, 2016, primarily driven by an increase of $2,697,000 in receivables, and an increase of $1,159,000 in inventories, partially offset by a $1,995,000 increase in accounts payable and other accrued expenses of $1,189,000. The Company’s operations provided cash of $3,136,000 duringand net earnings.

9


During the ninethree months ended January 31, 2016. Cash was primarily provided from earnings and an increase in accounts payable and other accrued expenses of $1,663,000, and deferred revenue of $467,000, which was partially offset by an increase in accounts receivable of $310,000, and an increase in inventories of $3,409,000.

During the nine months ended JanuaryJuly 31, 2017, the Company used net cash used of $2,190,000$471,000 in investing activities, which included $435,000 for capital expenditures, partially offset byand a decrease$36,000 increase in restricted cash. During the three months ended July 31, 2016, net cash of $129,000. This compares to the net use of cash of $876,000 for$1,115,000 was used in investing activities, in the comparable period of the prior yearwhich included $1,056,000 for capital expenditures of $1,708,000, partially offset byand a decrease of $832,000$59,000 increase in restricted cash.

The Company’s financing activities used cash of $477,000$554,000 during the ninethree months ended JanuaryJuly 31, 2017 primarily for cash dividends of $1,163,000 and payment$406,000 paid to stockholders, repayment of $105,000 on long-term debt, and a net decrease in short-term borrowings of $316,000, partially offset by an$52,000. The Company’s financing activities provided cash of $2,788,000 during the three months ended July 31, 2016, primarily from a $3,140,000 net increase in short-term borrowings, of $861,000. The Company’s financing activities used cash of $1,249,000 during the nine months ended January 31, 2016 for the final payment of $888,000 toward the purchase of the noncontrolling interest in a foreign subsidiary,partially offset by cash dividends of $1,012,000$350,000 paid to stockholders, cash dividendand repayment of $75,000 paid to minority interest holders, and payments of $316,000 on long-term debt partially offset by an increase in short-term borrowings of $583,000 and net proceeds of $459,000 from the exercise of stock options.$105,000.

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 fluctuations in prevailing pricing for projects in the laboratory construction marketplace and 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. Looking forward the Company is optimistic that thefiscal year 2018 will result in increased sales and earnings improvement will be sustained during the balance of fiscal year 2017 as our order backlog and opportunities in the marketplace remain strong.

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

This report 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 report, 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 forward-looking 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. Such factors, risks, uncertainties and assumptions include, but are not limited to, competitive and general economic conditions, both domestically and internationally; changes in customer demands; dependence on customers’ required delivery schedules; risks related to fluctuations in the Company’s operating results from quarter to quarter; risks related to international operations, including foreign currency fluctuations; changes in the legal and regulatory environment; changes in raw materials and commodity costs; and acts of terrorism, war, governmental action, natural disasters and other Force Majeure events. Many important factors that could cause such a difference are described under the caption “Risk Factors” in Item 1A in the Company’s 20162017 Annual Report on Form 10-K. 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.

10


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, 2016.2017.

Item 4. Controls and Procedures

(a) Evaluation of disclosure controlsDisclosure Controls and proceduresProcedures

AnAs of the end of the period covered by this Quarterly Report on Form 10-Q, we carried out an evaluation was performed under the supervision and with the participation of the Company’sour management, including theour Chief Executive Officer (“CEO”) and our Chief Financial Officer, (“CFO”), of the effectiveness of the design and operation of the Company’sour disclosure controls and procedures (asas defined in RulesRule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of January 31, 2017.1934. Based on thatthe evaluation, the Company’s management, including the CEOour Chief Executive Officer and CFO,our Chief Financial Officer have concluded that, as of January 31, 2017, the Company’send of the period covered by this Quarterly Report on Form 10-Q, our disclosure controls and procedures were adequate andnot effective and designed to ensure that all materialthe information required to be fileddisclosed by us in this quarterly reportthe reports that we file or submit under the Exchange Act is made known to them by others(i) recorded, processed, summarized, and reported within the Company and its subsidiaries.

(b) Changes in internal controls

There was no significant changetime periods specified in the Company’sSEC’s rules and forms and (ii) accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required financial disclosure.

As disclosed under Item 9A. Controls and Procedures in our Annual Report on Form 10-K for the year ended April 30, 2017, management identified a material weakness in internal control over financial reporting that occurred duringrelating to the most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect,misapplication of certain aspects of the Company’s internal control over financial reporting.multi-element and percentage of completion revenue recognition policies.

The Company has implemented changes to the design of its controls and procedures surrounding the execution of the Company’s multi-element and percentage of completion revenue recognition policies, which included, but were not limited to, drafting additional policy guidance, training key personnel and developing additional detective and monitoring controls. The material weakness cannot be considered remediated until the applicable controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively. We currently expect to complete remediation of the material weakness by April 30, 2018.

11


PART II. OTHER INFORMATION

Item 6. Exhibits

Item 6.Exhibits

 

10.1C*10.1*  Third Amendment to the Re-Established Retirement Plan for Salaried Employees of Kewaunee Scientific Corporation.
10.2C*Third Amendment to the Re-Established RetirementCorporation 2017 Omnibus Incentive Plan for Hourly Employees of Kewaunee Scientific Corporation.1
31.1  Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2  Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1  Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2  Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS  XBRL Instance Document
101.SCH  XBRL Taxonomy Extension Schema Document
101.CAL  XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF  XBRL Taxonomy Extension Definition Linkbase Document
101.LAB  XBRL Taxonomy Extension Label Linkbase Document
101.PRE  XBRL Taxonomy Extension Presentation Linkbase Document

 

*The referenced exhibit is a management contract or compensatory plan or arrangement.
1Filed as Appendix A to the Kewaunee Scientific Corporation Proxy Statement for its Annual Meeting of Stockholders on August 30, 2017 (Commission File No. 0-5286) filed on July 21, 2017, and incorporated herein by reference.

12


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.

 

  KEWAUNEE SCIENTIFIC CORPORATION

(Registrant)
Date: March 13,September 8, 2017  By 

/s/ Thomas D. Hull III

   Thomas D. Hull III
   (As duly authorized officer and Vice President, Finance and Chief Financial Officer)

 

13