Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jul. 31, 2016 | Sep. 06, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 31, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
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 | 2,705,879 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Income Statement [Abstract] | ||
Net Sales | $ 37,279 | $ 31,089 |
Costs of products sold | 30,140 | 25,246 |
Gross profit | 7,139 | 5,843 |
Operating expenses | 5,078 | 4,319 |
Operating earnings | 2,061 | 1,524 |
Other income | 119 | 102 |
Interest expense | (80) | (92) |
Earnings before income taxes | 2,100 | 1,534 |
Income tax expense | 770 | 571 |
Net earnings | 1,330 | 963 |
Less: net earnings attributable to the noncontrolling interest | 30 | 23 |
Net earnings attributable to Kewaunee Scientific Corporation | $ 1,300 | $ 940 |
Net earnings per share attributable to Kewaunee Scientific Corporation stockholders | ||
Basic | $ 0.48 | $ 0.36 |
Diluted | $ 0.48 | $ 0.35 |
Weighted average number of common shares outstanding | ||
Basic | 2,693 | 2,630 |
Diluted | 2,707 | 2,659 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 1,330 | $ 963 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments | (26) | (19) |
Change in fair value of cash flow hedge | 4 | 12 |
Other comprehensive income (loss) | (22) | (7) |
Comprehensive income, net of tax | 1,308 | 956 |
Less: comprehensive income attributable to the noncontrolling interest | 30 | 23 |
Comprehensive income attributable to Kewaunee Scientific Corporation | $ 1,278 | $ 933 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - 3 months ended Jul. 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, 2016 | $ 38,242 | $ 6,720 | $ 2,375 | $ (53) | $ 36,826 | $ (7,626) |
Net earnings attributable to Kewaunee Scientific Corporation | 1,300 | 1,300 | ||||
Other comprehensive (loss) | (22) | (22) | ||||
Cash dividends paid, $0.13 per share | (350) | (350) | ||||
Stock options exercised, 21,475 shares | 103 | 32 | 71 | |||
Stock based compensation | 47 | 47 | ||||
Balance at Jul. 31, 2016 | $ 39,320 | $ 6,752 | $ 2,493 | $ (53) | $ 37,776 | $ (7,648) |
Consolidated Statement of Stoc5
Consolidated Statement of Stockholders' Equity (Parenthetical) | 3 Months Ended |
Jul. 31, 2016$ / sharesshares | |
Cash dividends paid, per share | $ / shares | $ 0.13 |
Stock options exercised, shares | 21,475 |
Common Stock [Member] | |
Stock options exercised, shares | 21,475 |
Additional Paid-in Capital [Member] | |
Stock options exercised, shares | 21,475 |
Retained Earnings [Member] | |
Cash dividends paid, per share | $ / shares | $ 0.13 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2016 | Apr. 30, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 6,711 | $ 5,222 |
Restricted cash | 1,626 | 1,567 |
Receivables, less allowance: $217, $202, on each respective date | 30,517 | 27,835 |
Inventories | 16,785 | 15,626 |
Prepaid expenses and other current assets | 1,287 | 707 |
Total Current Assets | 56,926 | 50,957 |
Property, plant and equipment, at cost | 50,932 | 49,928 |
Accumulated depreciation | (36,405) | (35,810) |
Net Property, Plant and Equipment | 14,527 | 14,118 |
Deferred income taxes | 3,431 | 3,392 |
Other | 3,524 | 3,938 |
Total Other Assets | 6,955 | 7,330 |
Total Assets | 78,408 | 72,405 |
Current Liabilities: | ||
Short-term borrowings and interest rate swaps | 6,958 | 3,818 |
Current portion of long-term debt | 421 | 421 |
Accounts payable | 13,821 | 11,722 |
Employee compensation and amounts withheld | 1,727 | 2,333 |
Deferred revenue | 811 | 785 |
Other accrued expenses | 2,373 | 1,871 |
Total Current Liabilities | 26,111 | 20,950 |
Long-term debt | 3,244 | 3,349 |
Accrued pension and deferred compensation costs | 9,394 | 9,554 |
Total Liabilities | 38,749 | 33,853 |
Commitments and Contingencies | ||
Equity: | ||
Common Stock, $2.50 par value, Authorized - 5,000 shares; Issued - 2,701 shares; 2,688 shares Outstanding - 2,698 shares; 2,685 shares, on each date | 6,752 | 6,720 |
Additional paid-in-capital | 2,493 | 2,375 |
Retained earnings | 37,776 | 36,826 |
Accumulated other comprehensive loss | (7,648) | (7,626) |
Common stock in treasury, at cost, 3 shares, on each date | (53) | (53) |
Total Kewaunee Scientific Corporation Stockholders' Equity | 39,320 | 38,242 |
Noncontrolling interest | 339 | 310 |
Total Equity | 39,659 | 38,552 |
Total Liabilities and Equity | $ 78,408 | $ 72,405 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 31, 2016 | Apr. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for receivables | $ 217 | $ 202 |
Common stock, par value | $ 2.50 | $ 2.50 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 2,701,000 | 2,688,000 |
Common stock, shares outstanding | 2,698,000 | 2,685,000 |
Treasury stock, shares | 3,000 | 3,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Cash flows from operating activities: | ||
Net earnings | $ 1,330 | $ 963 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||
Depreciation | 647 | 621 |
Bad debt provision | 15 | |
Stock based compensation expense | 47 | 47 |
Benefit for deferred income tax expense | (39) | (10) |
Change in assets and liabilities: | ||
(Increase) decrease in receivables | (2,697) | 989 |
Increase in inventories | (1,159) | (1,225) |
Increase in accounts payable and other accrued expenses | 1,995 | 449 |
Increase in deferred revenue | 26 | 386 |
Other, net | (345) | (699) |
Net cash (used in) provided by operating activities | (180) | 1,521 |
Cash flows from investing activities: | ||
Capital expenditures | (1,056) | (472) |
(Increase) decrease in restricted cash | (59) | 312 |
Net cash used in investing activities | (1,115) | (160) |
Cash flows from financing activities: | ||
Dividends paid | (350) | (316) |
Dividends paid to noncontrolling interest in subsidiaries | (75) | |
Increase (decrease) in short-term borrowings and interest rate swaps | 3,140 | (54) |
Payments on long-term debt | (105) | (106) |
Payment toward purchase of noncontrolling interest in subsidiary | (888) | |
Net proceeds from exercise of stock options (including tax benefit) | 103 | |
Net cash provided by (used in) financing activities | 2,788 | (1,439) |
Effect of exchange rate changes on cash | (4) | (67) |
Increase (decrease) in cash and cash equivalents | 1,489 | (145) |
Cash and cash equivalents, beginning of period | 5,222 | 3,044 |
Cash and cash equivalents, end of period | $ 6,711 | $ 2,899 |
Financial Information
Financial Information | 3 Months Ended |
Jul. 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 (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 2016 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, 2016 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 | 3 Months Ended |
Jul. 31, 2016 | |
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 month 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 110,000 shares were not included in the computation of diluted earnings per share for the three month period ended July 31, 2016, because the option exercise prices were greater than the average market price of the common shares during the quarter, and accordingly, such options would have an antidilutive effect. Options to purchase 29,276 shares were not included in the computation of diluted earnings per share for the three month period ended July 31, 2015, because the effect would be anti-dilutive. |
Inventories
Inventories | 3 Months Ended |
Jul. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | C. Inventories Inventories consisted of the following (in thousands): July 31, 2016 April 30, 2016 Finished products $ 4,177 $ 3,707 Work in process 2,221 1,889 Raw materials 10,387 10,030 $ 16,785 $ 15,626 The Company uses the last-in, first-out (LIFO) method of valuing inventory for its domestic operations. 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. |
Segment Information
Segment Information | 3 Months Ended |
Jul. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | D. Segment Information The following table provides financial information by business segments for the three months ended July 31, 2016 and 2015 (in thousands): Domestic International Corporate Total Three months ended July 31, 2016 Revenues from external customers $ 29,637 $ 7,642 $ — $ 37,279 Intersegment revenues 866 1,135 (2,001 ) — Earnings (loss) before income taxes 2,573 817 (1,290 ) 2,100 Three months ended July 31, 2015 Revenues from external customers $ 24,315 $ 6,774 $ — $ 31,089 Intersegment revenues 286 521 (807 ) — Earnings (loss) before income taxes 1,833 765 (1,064 ) 1,534 |
Defined Benefit Pension Plans
Defined Benefit Pension Plans | 3 Months Ended |
Jul. 31, 2016 | |
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. The Company did not make any contributions to the plans during the three months ended July 31, 2016 and 2015. The Company expects to make contributions of $555,000 to the plans during fiscal year 2017. Pension expense consisted of the following (in thousands): Three months ended Three months ended Service cost $ -0- $ -0- Interest cost 231 230 Expected return on plan assets (310 ) (344 ) Recognition of net loss 310 294 Net periodic pension expense $ 231 $ 180 |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Jul. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | F. New Accounting Standards In November 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-17, “Income Taxes (Topic 740) – Balance Sheet Classification of Deferred Taxes.” This guidance eliminates the requirement to separate deferred income tax liabilities and assets into current 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. 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. The adoption of this standard did not have a significant impact on the Company’s consolidated financial position or results of operations. |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 3 Months Ended |
Jul. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | In November 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-17, “Income Taxes (Topic 740) – Balance Sheet Classification of Deferred Taxes.” This guidance eliminates the requirement to separate deferred income tax liabilities and assets into current 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. 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. The adoption of this standard did not have a significant impact on the Company’s consolidated financial position or results of operations. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jul. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consisted of the following (in thousands): July 31, 2016 April 30, 2016 Finished products $ 4,177 $ 3,707 Work in process 2,221 1,889 Raw materials 10,387 10,030 $ 16,785 $ 15,626 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Jul. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | The following table provides financial information by business segments for the three months ended July 31, 2016 and 2015 (in thousands): Domestic International Corporate Total Three months ended July 31, 2016 Revenues from external customers $ 29,637 $ 7,642 $ — $ 37,279 Intersegment revenues 866 1,135 (2,001 ) — Earnings (loss) before income taxes 2,573 817 (1,290 ) 2,100 Three months ended July 31, 2015 Revenues from external customers $ 24,315 $ 6,774 $ — $ 31,089 Intersegment revenues 286 521 (807 ) — Earnings (loss) before income taxes 1,833 765 (1,064 ) 1,534 |
Defined Benefit Pension Plans (
Defined Benefit Pension Plans (Tables) | 3 Months Ended |
Jul. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension Expenses | Pension expense consisted of the following (in thousands): Three months ended Three months ended Service cost $ -0- $ -0- Interest cost 231 230 Expected return on plan assets (310 ) (344 ) Recognition of net loss 310 294 Net periodic pension expense $ 231 $ 180 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive options exclude from computation of earning per share | 110,000 | 29,276 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Jul. 31, 2016 | Apr. 30, 2016 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 4,177 | $ 3,707 |
Work in process | 2,221 | 1,889 |
Raw materials | 10,387 | 10,030 |
Total inventories | $ 16,785 | $ 15,626 |
Segment Information - Segment I
Segment Information - Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Revenues from external customers | $ 37,279 | $ 31,089 |
Earnings (loss) before income taxes | 2,100 | 1,534 |
Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Intersegment revenues | (2,001) | (807) |
Earnings (loss) before income taxes | (1,290) | (1,064) |
Domestic [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues from external customers | 29,637 | 24,315 |
Intersegment revenues | 866 | 286 |
Earnings (loss) before income taxes | 2,573 | 1,833 |
International [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues from external customers | 7,642 | 6,774 |
Intersegment revenues | 1,135 | 521 |
Earnings (loss) before income taxes | $ 817 | $ 765 |
Defined Benefit Pension Plans -
Defined Benefit Pension Plans - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | ||
Contributions made by company | $ 0 | $ 0 |
Company expected contributions remainder of fiscal year | $ 555,000 |
Defined Benefit Pension Plans23
Defined Benefit Pension Plans - Pension Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | ||
Service cost | $ 0 | $ 0 |
Interest cost | 231 | 230 |
Expected return on plan assets | (310) | (344) |
Recognition of net loss | 310 | 294 |
Net periodic pension expense | $ 231 | $ 180 |