Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jan. 31, 2016 | Mar. 07, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jan. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | KEQU | |
Entity Registrant Name | KEWAUNEE SCIENTIFIC CORP /DE/ | |
Entity Central Index Key | 55,529 | |
Current Fiscal Year End Date | --04-30 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 2,684,580 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 32,410 | $ 27,754 | $ 94,536 | $ 88,546 |
Costs of products sold | 26,922 | 23,298 | 77,673 | 72,120 |
Gross profit | 5,488 | 4,456 | 16,863 | 16,426 |
Operating expenses | 4,441 | 3,872 | 13,163 | 12,170 |
Operating earnings | 1,047 | 584 | 3,700 | 4,256 |
Other income | 109 | 134 | 296 | 385 |
Interest expense | (83) | (91) | (236) | (274) |
Earnings before income taxes | 1,073 | 627 | 3,760 | 4,367 |
Income tax expense | 225 | 109 | 1,242 | 1,361 |
Net earnings | 848 | 518 | 2,518 | 3,006 |
Less: net earnings attributable to the noncontrolling interest | 18 | 34 | 53 | 86 |
Net earnings attributable to Kewaunee Scientific Corporation | $ 830 | $ 484 | $ 2,465 | $ 2,920 |
Net earnings per share attributable to Kewaunee Scientific Corporation stockholders | ||||
Basic | $ 0.31 | $ 0.18 | $ 0.93 | $ 1.11 |
Diluted | $ 0.31 | $ 0.18 | $ 0.92 | $ 1.10 |
Weighted average number of common shares outstanding | ||||
Basic | 2,682 | 2,628 | 2,661 | 2,625 |
Diluted | 2,699 | 2,659 | 2,683 | 2,656 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 848 | $ 518 | $ 2,518 | $ 3,006 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (221) | (130) | (435) | (246) |
Change in fair value of cash flow hedge | (17) | 11 | (15) | |
Other comprehensive income (loss) | (221) | (147) | (424) | (261) |
Comprehensive income, net of tax | 627 | 371 | 2,094 | 2,745 |
Less: comprehensive income attributable to the noncontrolling interest | 18 | 34 | 53 | 86 |
Comprehensive income attributable to Kewaunee Scientific Corporation | $ 609 | $ 337 | $ 2,041 | $ 2,659 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - 9 months ended Jan. 31, 2016 - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance at Apr. 30, 2015 | $ 34,876 | $ 6,583 | $ 1,841 | $ (53) | $ 34,385 | $ (7,880) |
Net earnings attributable to Kewaunee Scientific Corporation | 2,465 | 2,465 | ||||
Other comprehensive income (loss) | (424) | (424) | ||||
Cash dividends paid, $0.38 per share | (1,012) | (1,012) | ||||
Stock options exercised, 84,000 shares | 459 | 137 | 322 | |||
Stock based compensation | 146 | 146 | ||||
Balance at Jan. 31, 2016 | $ 36,510 | $ 6,720 | $ 2,309 | $ (53) | $ 35,838 | $ (8,304) |
Consolidated Statement of Stoc5
Consolidated Statement of Stockholders' Equity (Parenthetical) | 9 Months Ended |
Jan. 31, 2016$ / sharesshares | |
Cash dividends paid, per share | $ / shares | $ 0.38 |
Stock options exercised, shares | 84,000 |
Common Stock [Member] | |
Stock options exercised, shares | 84,000 |
Additional Paid-in Capital [Member] | |
Stock options exercised, shares | 84,000 |
Retained Earnings [Member] | |
Cash dividends paid, per share | $ / shares | $ 0.38 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2016 | Apr. 30, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 3,709 | $ 3,044 |
Restricted cash | 1,444 | 2,276 |
Receivables, less allowance: $171; $171, on each respective date | 29,409 | 29,106 |
Inventories | 16,154 | 12,745 |
Deferred income taxes | 814 | 856 |
Prepaid expenses and other current assets | 891 | 735 |
Total Current Assets | 52,421 | 48,762 |
Property, plant and equipment, at cost | 49,798 | 48,167 |
Accumulated depreciation | (35,417) | (33,644) |
Net Property, Plant and Equipment | 14,381 | 14,523 |
Deferred income taxes | 2,470 | 2,468 |
Other | 3,567 | 3,737 |
Total Other Assets | 6,037 | 6,205 |
Total Assets | 72,839 | 69,490 |
Current Liabilities: | ||
Short-term borrowings and interest rate swaps | 5,538 | 4,955 |
Current portion of long-term debt | 421 | 421 |
Accounts payable | 12,215 | 11,232 |
Employee compensation and amounts withheld | 1,813 | 1,882 |
Deferred revenue | 683 | 216 |
Other accrued expenses | 2,210 | 2,349 |
Total Current Liabilities | 22,880 | 21,055 |
Long-term debt | 3,455 | 3,771 |
Accrued pension and deferred compensation costs | 9,712 | 9,465 |
Total Liabilities | $ 36,047 | $ 34,291 |
Commitments and Contingencies | ||
Equity: | ||
Common Stock, $2.50 par value, Authorized - 5,000 shares; Issued - 2,688 shares; 2,633 shares; Outstanding - 2,685 shares; 2,630 shares, on each respective date | $ 6,720 | $ 6,583 |
Additional paid-in-capital | 2,309 | 1,841 |
Retained earnings | 35,838 | 34,385 |
Accumulated other comprehensive loss | (8,304) | (7,880) |
Common stock in treasury, at cost, 3 shares, on each date | (53) | (53) |
Total Kewaunee Scientific Corporation Stockholders' Equity | 36,510 | 34,876 |
Noncontrolling interest | 282 | 323 |
Total Equity | 36,792 | 35,199 |
Total Liabilities and Equity | $ 72,839 | $ 69,490 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2016 | Apr. 30, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for receivables | $ 171 | $ 171 |
Common stock, par value | $ 2.50 | $ 2.50 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 2,688,000 | 2,633,000 |
Common stock, shares outstanding | 2,685,000 | 2,630,000 |
Treasury stock, shares | 3,000 | 3,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Cash flows from operating activities: | ||
Net earnings | $ 2,518 | $ 3,006 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation | 1,850 | 1,900 |
Bad debt provision | 7 | 34 |
Stock based compensation expense | 146 | 154 |
Provision for deferred income tax expense | 40 | (71) |
Change in assets and liabilities: | ||
Increase in receivables | (310) | (1,623) |
Increase in inventories | (3,409) | (492) |
Increase in accounts payable and other accrued expenses | 1,663 | 4,022 |
Increase in deferred revenue | 467 | 159 |
Other, net | 164 | (750) |
Net cash provided by operating activities | 3,136 | 6,339 |
Cash flows from investing activities: | ||
Capital expenditures | (1,708) | (2,135) |
Decrease (increase) in restricted cash | 832 | (2,156) |
Net cash used in investing activities | (876) | (4,291) |
Cash flows from financing activities: | ||
Dividends paid | (1,012) | (919) |
Dividends paid to noncontrolling interest in subsidiaries | (75) | (38) |
Increase (decrease) in short-term borrowings and interest rate swaps | 583 | (2,114) |
Payments on long-term debt | (316) | (316) |
Payment toward purchase of noncontrolling interest in subsidiary | (888) | (888) |
Net proceeds from exercise of stock options (including tax benefit) | 459 | 33 |
Net cash used in financing activities | (1,249) | (4,242) |
Effect of exchange rate changes on cash | (346) | (191) |
Increase (decrease) in cash and cash equivalents | 665 | (2,385) |
Cash and cash equivalents, beginning of period | 3,044 | 6,248 |
Cash and cash equivalents, end of period | $ 3,709 | $ 3,863 |
Financial Information
Financial Information | 9 Months Ended |
Jan. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [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 2015 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, 2015 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jan. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | B. Summary of Significant Accounting Policies Insurance – Effective January 1, 2016, the Company moved from a fully insured health care program to that of a self-insured program. The Company has also purchased specific stop-loss insurance to limit claims above certain amounts. The Company accrues estimated losses using actuarial models and assumptions based on historical loss experience. The Company records the insurance reserve within other accrued expenses on the consolidated balance sheets. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jan. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | C. 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 111,400 shares were not included in the computation of diluted earnings per share for the three and nine month periods ended January 31, 2016, 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 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 effect would be anti-dilutive. |
Inventories
Inventories | 9 Months Ended |
Jan. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | D. Inventories Inventories consisted of the following (in thousands): January 31, 2016 April 30, 2015 Finished products $ 4,117 $ 2,936 Work in process 1,633 1,422 Raw materials 10,404 8,387 $ 16,154 $ 12,745 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, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | E. Segment Information The following table provides financial information by business segments for the three and nine months ended January 31, 2016 and 2015 (in thousands): Domestic International Corporate Total Three months ended January 31, 2016 Revenues from external customers $ 25,423 $ 6,987 $ — $ 32,410 Intersegment revenues 1,196 421 (1,617 ) — Earnings (loss) before income taxes 1,586 702 (1,215 ) 1,073 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 Domestic International Corporate Total 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 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 |
Defined Benefit Pension Plans
Defined Benefit Pension Plans | 9 Months Ended |
Jan. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Defined Benefit Pension Plans | F. 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 $64,000 were paid to the plans during the nine months ended January 31, 2016, and the Company does not expect any contributions to be paid to the plans during the remainder of the fiscal year. Contributions of $775,000 were made during the nine months ended January 31, 2015. Pension expense consisted of the following (in thousands): Three months ended January 31, 2016 Three months ended January 31, 2015 Service cost $ -0- $ -0- Interest cost 224 223 Expected return on plan assets (334 ) (331 ) Recognition of net loss 329 233 Net periodic pension expense $ 219 $ 125 Nine months ended January 31, 2016 Nine months ended January 31, 2015 Service cost $ -0- $ -0- Interest cost 684 670 Expected return on plan assets (1,022 ) (993 ) Recognition of net loss 917 700 Net periodic pension expense $ 579 $ 377 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consisted of the following (in thousands): January 31, 2016 April 30, 2015 Finished products $ 4,117 $ 2,936 Work in process 1,633 1,422 Raw materials 10,404 8,387 $ 16,154 $ 12,745 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | The following table provides financial information by business segments for the three and nine months ended January 31, 2016 and 2015 (in thousands): Domestic International Corporate Total Three months ended January 31, 2016 Revenues from external customers $ 25,423 $ 6,987 $ — $ 32,410 Intersegment revenues 1,196 421 (1,617 ) — Earnings (loss) before income taxes 1,586 702 (1,215 ) 1,073 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 Domestic International Corporate Total 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 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 |
Defined Benefit Pension Plans (
Defined Benefit Pension Plans (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension Expenses | Pension expense consisted of the following (in thousands): Three months ended January 31, 2016 Three months ended January 31, 2015 Service cost $ -0- $ -0- Interest cost 224 223 Expected return on plan assets (334 ) (331 ) Recognition of net loss 329 233 Net periodic pension expense $ 219 $ 125 Nine months ended January 31, 2016 Nine months ended January 31, 2015 Service cost $ -0- $ -0- Interest cost 684 670 Expected return on plan assets (1,022 ) (993 ) Recognition of net loss 917 700 Net periodic pension expense $ 579 $ 377 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive options exclude from computation of earning per share | 111,400 | 70,800 | 111,400 | 70,800 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Jan. 31, 2016 | Apr. 30, 2015 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 4,117 | $ 2,936 |
Work in process | 1,633 | 1,422 |
Raw materials | 10,404 | 8,387 |
Total inventories | $ 16,154 | $ 12,745 |
Segment Information - Segment I
Segment Information - Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||
Revenues from external customers | $ 32,410 | $ 27,754 | $ 94,536 | $ 88,546 |
Earnings (loss) before income taxes | 1,073 | 627 | 3,760 | 4,367 |
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment revenues | (1,617) | (1,198) | (3,336) | (3,010) |
Earnings (loss) before income taxes | (1,215) | (683) | (3,588) | (2,678) |
Domestic Operations [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from external customers | 25,423 | 20,025 | 76,017 | 67,902 |
Intersegment revenues | 1,196 | 501 | 1,642 | 1,407 |
Earnings (loss) before income taxes | 1,586 | 264 | 5,346 | 4,526 |
International Operations [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues from external customers | 6,987 | 7,729 | 18,519 | 20,644 |
Intersegment revenues | 421 | 697 | 1,694 | 1,603 |
Earnings (loss) before income taxes | $ 702 | $ 1,046 | $ 2,002 | $ 2,519 |
Defined Benefit Pension Plans -
Defined Benefit Pension Plans - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | ||
Company expected contributions remainder of fiscal year | $ 0 | |
Contributions made by company | $ 64,000 | $ 775,000 |
Defined Benefit Pension Plans22
Defined Benefit Pension Plans - Pension Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 224 | 223 | 684 | 670 |
Expected return on plan assets | (334) | (331) | (1,022) | (993) |
Recognition of net loss | 329 | 233 | 917 | 700 |
Net periodic pension expense | $ 219 | $ 125 | $ 579 | $ 377 |