Kewaunee Scientific (KEQU) 10-Q 13 Mar 15 2015 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Jan. 31, 2015	Mar. 09, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	31-Jan-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Trading Symbol	KEQU
Entity Registrant Name	KEWAUNEE SCIENTIFIC CORP /DE/
Entity Central Index Key	55529
Current Fiscal Year End Date	-26
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,628,838

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Income Statement [Abstract]
Net sales	$27,754	$26,013	$88,546	$84,114
Costs of products sold	23,298	21,302	72,120	67,934
Gross profit	4,456	4,711	16,426	16,180
Operating expenses	3,872	3,773	12,170	11,676
Operating earnings	584	938	4,256	4,504
Other income	134	95	385	265
Interest expense	-91	-116	-274	-276
Earnings before income taxes	627	917	4,367	4,493
Income tax expense	109	292	1,361	1,505
Net earnings	518	625	3,006	2,988
Less: net earnings attributable to the noncontrolling interest	34	21	86	72
Net earnings attributable to Kewaunee Scientific Corporation	$484	$604	$2,920	$2,916
Net earnings per share attributable to Kewaunee Scientific Corporation stockholders
Basic	$0.18	$0.23	$1.11	$1.12
Diluted	$0.18	$0.22	$1.10	$1.11
Weighted average number of common shares outstanding
Basic	2,628	2,615	2,625	2,606
Diluted	2,659	2,645	2,656	2,627

Consolidated_Statements_of_Com

Consolidated Statements of Comprehensive Income (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Statement of Comprehensive Income [Abstract]
Net earnings	$518	$625	$3,006	$2,988
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	-130	-133	-246	-566
Change in fair value of cash flow hedge	-17	28	-15	70
Other comprehensive income (loss)	-147	-105	-261	-496
Comprehensive income, net of tax	371	520	2,745	2,492
Less: comprehensive income attributable to the noncontrolling interest	34	21	86	72
Comprehensive income attributable to Kewaunee Scientific Corporation	$337	$499	$2,659	$2,420

Consolidated_Statement_of_Stoc

Consolidated Statement of Stockholders' Equity (USD $)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
In Thousands
Balance at Apr. 30, 2014	$33,959	$6,557	$1,642	($57)	$32,090	($6,273)
Net earnings attributable to Kewaunee Scientific Corporation	2,920				2,920
Other comprehensive income (loss)	-261					-261
Cash dividends paid, $0.35 per share	-919				-919
Stock options exercised, 29,075 shares	54	23	6	25
Stock based compensation	154		154
Purchase of treasury stock, 1,159 shares	-21			-21
Balance at Jan. 31, 2015	$35,886	$6,580	$1,802	($53)	$34,091	($6,534)

Consolidated_Statement_of_Stoc1

Consolidated Statement of Stockholders' Equity (Parenthetical) (USD $)	9 Months Ended
	Jan. 31, 2015
Cash dividends paid, per share	$0.35
Stock options exercised, shares	29,075
Treasury stock, shares	1,159
Common Stock [Member]
Stock options exercised, shares	29,075
Additional Paid-in Capital [Member]
Stock options exercised, shares	29,075
Treasury Stock [Member]
Stock options exercised, shares	29,075
Treasury stock, shares	1,159
Retained Earnings [Member]
Cash dividends paid, per share	$0.35

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Jan. 31, 2015	Apr. 30, 2014
In Thousands, unless otherwise specified
Current Assets:
Cash and cash equivalents	$3,863	$6,248
Restricted cash	2,524	368
Receivables, less allowance	25,062	23,473
Inventories	12,430	11,938
Deferred income taxes	655	646
Prepaid expenses and other current assets	1,048	680
Total Current Assets	45,582	43,353
Property, plant and equipment, at cost	48,409	46,391
Accumulated depreciation	-33,604	-31,821
Net Property, Plant and Equipment	14,805	14,570
Deferred income taxes	1,447	1,385
Other	3,616	3,409
Total Other Assets	5,063	4,794
Total Assets	65,450	62,717
Current Liabilities:
Short-term borrowings and interest rate swap	1,036	3,150
Current portion of long-term debt	421	421
Accounts payable	12,093	8,542
Employee compensation and amounts withheld	1,358	2,000
Deferred revenue	296	137
Other accrued expenses	3,026	1,913
Total Current Liabilities	18,230	16,163
Long-term debt	3,876	4,192
Accrued pension and deferred compensation costs	7,152	7,250
Other non-current liabilities		888
Total Liabilities	29,258	28,493
Commitments and Contingencies
Equity:
Common Stock	6,580	6,557
Additional paid-in-capital	1,802	1,642
Retained earnings	34,091	32,090
Accumulated other comprehensive loss	-6,534	-6,273
Common stock in treasury, at cost	-53	-57
Total Kewaunee Scientific Corporation Stockholders' Equity	35,886	33,959
Noncontrolling interest	306	265
Total Equity	36,192	34,224
Total Liabilities and Equity	$65,450	$62,717

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2015	Jan. 31, 2014
Cash flows from operating activities:
Net earnings	$3,006	$2,988
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation	1,900	1,846
Bad debt provision	34	109
Stock based compensation expense	154	186
Provision for deferred income tax expense	-71	-80
Change in assets and liabilities:
(Increase) decrease in receivables	-1,623	3,805
(Increase) decrease in inventories	-492	696
Increase (decrease) in accounts payable and other accrued expenses	4,022	-2,127
Increase (decrease) in deferred revenue	159	-317
Other, net	-750	126
Net cash provided by operating activities	6,339	7,232
Cash flows from investing activities:
Capital expenditures	-2,135	-1,614
(Increase) decrease in restricted cash	-2,156	14
Net cash used in investing activities	-4,291	-1,600
Cash flows from financing activities:
Dividends paid	-919	-834
Dividends paid to noncontrolling interest in subsidiaries	-38	-38
Decrease in short-term borrowings and interest rate swap	-2,114	-2,828
Proceeds from long-term debt		5,000
Payments on long-term debt	-316	-3,748
Payment toward purchase of noncontrolling interest in subsidiary	-888	-1,780
Net proceeds from exercise of stock options (including tax benefit)	33	59
Net cash used in financing activities	-4,242	-4,169
Effect of exchange rate changes on cash	-191	-616
(Decrease) increase in cash and cash equivalents	-2,385	847
Cash and cash equivalents, beginning of period	6,248	5,811
Cash and cash equivalents, end of period	3,863	6,658
Supplemental Disclosure of Cash Flow Information
Purchase of noncontrolling interest in subsidiary - Other accrued expenses and other non-current liabilities		$1,775

Financial_Information

Financial Information	9 Months Ended
	Jan. 31, 2015
Accounting Policies [Abstract]
Financial Information	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. 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 2014 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, 2014 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.

Earnings_Per_Share

Earnings Per Share	9 Months Ended
	Jan. 31, 2015
Earnings Per Share [Abstract]
Earnings Per Share	B. 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. 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 70,800 shares were not included in the computation of diluted earnings per share for the three and nine month periods ended January 31, 2015, 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 36,600 shares were not included in the computation of diluted earnings per share for the three and nine month periods ended January 31, 2014, because the effect would be anti-dilutive.

Inventories

Inventories	9 Months Ended
	Jan. 31, 2015
Inventory Disclosure [Abstract]
Inventories	C. Inventories
	Inventories consisted of the following (in thousands):
		January 31, 2015		April 30, 2014
	Finished products	$	3,137	$	2,909
	Work in process		1,412		1,550
	Raw materials		7,881		7,479
		$	12,430	$	11,938
	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.

Segment_Information

Segment Information	9 Months Ended
	Jan. 31, 2015
Segment Reporting [Abstract]
Segment Information	D. Segment Information
	The following table provides financial information by business segments for the three and nine months ended January 31, 2015 and 2014 (in thousands):
		Domestic		International		Corporate			Total
		Operations		Operations
	Three months ended January 31, 2015
	Revenues from external customers	$	20,025	$	7,729	$	—		$	27,754
	Intersegment revenues		501		697		(1,198	)		—
	Earnings (loss) before income taxes		264		1,046		(683	)		627
	Three months ended January 31, 2014
	Revenues from external customers	$	21,544	$	4,469	$	—		$	26,013
	Intersegment revenues		214		456		(670	)		—
	Earnings (loss) before income taxes		1,227		678		(988	)		917
		Domestic		International		Corporate			Total
		Operations		Operations
	Nine months ended January 31, 2015
	Revenues from external customers	$	67,902	$	20,644	$	—		$	88,546
	Intersegment revenues		1,407		1,603		(3,010	)		—
	Earnings (loss) before income taxes		4,526		2,519		(2,678	)		4,367
	Nine months ended January 31, 2014
	Revenues from external customers	$	70,678	$	13,436	$	—		$	84,114
	Intersegment revenues		2,150		1,704		(3,854	)		—
	Earnings (loss) before income taxes		5,791		1,819		(3,117	)		4,493

Defined_Benefit_Pension_Plans

Defined Benefit Pension Plans	9 Months Ended
	Jan. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Defined Benefit Pension Plans	E. Defined Benefit Pension Plans
	The Company has non-contributory defined benefit pension plans. 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 $775,000 were paid to the plans during the nine months ended January 31, 2015, and the Company does not expect any contributions to be paid to the plans during the remainder of the fiscal year. Contributions of $300,000 were made during the nine months ended January 31, 2014.
	Pension expense consisted of the following (in thousands):
		Three months ended			Three months ended
		31-Jan-15			January 31, 2014
	Service cost	$	-0-		$	-0-
	Interest cost		223			214
	Expected return on plan assets		(331	)		(321	)
	Recognition of net loss		233			286
	Net periodic pension expense	$	125		$	179
		Nine months ended			Nine months ended
		31-Jan-15			January 31, 2014
	Service cost	$	-0-		$	-0-
	Interest cost		670			643
	Expected return on plan assets		(993	)		(962	)
	Recognition of net loss		700			857
	Net periodic pension expense	$	377		$	538

Inventories_Tables

Inventories (Tables)	9 Months Ended
	Jan. 31, 2015
Inventory Disclosure [Abstract]
Summary of Inventories	Inventories consisted of the following (in thousands):
		January 31, 2015		April 30, 2014
	Finished products	$	3,137	$	2,909
	Work in process		1,412		1,550
	Raw materials		7,881		7,479
		$	12,430	$	11,938

Segment_Information_Tables

Segment Information (Tables)	9 Months Ended
	Jan. 31, 2015
Segment Reporting [Abstract]
Segment Information	The following table provides financial information by business segments for the three and nine months ended January 31, 2015 and 2014 (in thousands):
		Domestic		International		Corporate			Total
		Operations		Operations
	Three months ended January 31, 2015
	Revenues from external customers	$	20,025	$	7,729	$	—		$	27,754
	Intersegment revenues		501		697		(1,198	)		—
	Earnings (loss) before income taxes		264		1,046		(683	)		627
	Three months ended January 31, 2014
	Revenues from external customers	$	21,544	$	4,469	$	—		$	26,013
	Intersegment revenues		214		456		(670	)		—
	Earnings (loss) before income taxes		1,227		678		(988	)		917
		Domestic		International		Corporate			Total
		Operations		Operations
	Nine months ended January 31, 2015
	Revenues from external customers	$	67,902	$	20,644	$	—		$	88,546
	Intersegment revenues		1,407		1,603		(3,010	)		—
	Earnings (loss) before income taxes		4,526		2,519		(2,678	)		4,367
	Nine months ended January 31, 2014
	Revenues from external customers	$	70,678	$	13,436	$	—		$	84,114
	Intersegment revenues		2,150		1,704		(3,854	)		—
	Earnings (loss) before income taxes		5,791		1,819		(3,117	)		4,493

Defined_Benefit_Pension_Plans_

Defined Benefit Pension Plans (Tables)	9 Months Ended
	Jan. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Pension Expenses	Pension expense consisted of the following (in thousands):
		Three months ended			Three months ended
		31-Jan-15			January 31, 2014
	Service cost	$	-0-		$	-0-
	Interest cost		223			214
	Expected return on plan assets		(331	)		(321	)
	Recognition of net loss		233			286
	Net periodic pension expense	$	125		$	179
		Nine months ended			Nine months ended
		31-Jan-15			January 31, 2014
	Service cost	$	-0-		$	-0-
	Interest cost		670			643
	Expected return on plan assets		(993	)		(962	)
	Recognition of net loss		700			857
	Net periodic pension expense	$	377		$	538

Earnings_Per_Share_Additional_

Earnings Per Share - Additional Information (Detail) (Stock Options [Member])	3 Months Ended		9 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Stock Options [Member]
Earnings Per Share [Line Items]
Anti-dilutive options excluded from computation of earnings per share	70,800	36,600	70,800	36,600

Inventories_Summary_of_Invento

Inventories - Summary of Inventories (Detail) (USD $)	Jan. 31, 2015	Apr. 30, 2014
In Thousands, unless otherwise specified
Inventory Disclosure [Abstract]
Finished products	$3,137	$2,909
Work in process	1,412	1,550
Raw materials	7,881	7,479
Total inventories	$12,430	$11,938

Segment_Information_Segment_In

Segment Information - Segment Information (Detail) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Segment Reporting Information [Line Items]
Revenues from external customers	$27,754	$26,013	$88,546	$84,114
Earnings (loss) before income taxes	627	917	4,367	4,493
Corporate [Member]
Segment Reporting Information [Line Items]
Intersegment revenues	-1,198	-670	-3,010	-3,854
Earnings (loss) before income taxes	-683	-988	-2,678	-3,117
Domestic Operations [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues from external customers	20,025	21,544	67,902	70,678
Intersegment revenues	501	214	1,407	2,150
Earnings (loss) before income taxes	264	1,227	4,526	5,791
International Operations [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues from external customers	7,729	4,469	20,644	13,436
Intersegment revenues	697	456	1,603	1,704
Earnings (loss) before income taxes	$1,046	$678	$2,519	$1,819

Defined_Benefit_Pension_Plans_1

Defined Benefit Pension Plans - Additional Information (Detail) (USD $)	9 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Compensation and Retirement Disclosure [Abstract]
Company expected contributions	$0
Contributions made by company	$775,000	$300,000

Defined_Benefit_Pension_Plans_2

Defined Benefit Pension Plans - Pension Expenses (Detail) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Compensation and Retirement Disclosure [Abstract]
Service cost	$0	$0	$0	$0
Interest cost	223	214	670	643
Expected return on plan assets	-331	-321	-993	-962
Recognition of net loss	233	286	700	857
Net periodic pension expense	$125	$179	$377	$538