Kewaunee Scientific (KEQU) 10-Q 8 Sep 17 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jul. 31, 2017	Sep. 05, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 31, 2017
Document Fiscal Year Focus	2,018
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		2,713,817

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Jul. 31, 2017	Jul. 31, 2016
Income Statement [Abstract]
Net Sales	$ 33,881	$ 37,279
Costs of products sold	27,060	30,140
Gross profit	6,821	7,139
Operating expenses	5,133	5,078
Operating earnings	1,688	2,061
Other income	168	119
Interest expense	(59)	(80)
Earnings before income taxes	1,797	2,100
Income tax expense	605	770
Net earnings	1,192	1,330
Less: net earnings attributable to the noncontrolling interest	44	30
Net earnings attributable to Kewaunee Scientific Corporation	$ 1,148	$ 1,300
Net earnings per share attributable to Kewaunee Scientific Corporation stockholders
Basic	$ 0.42	$ 0.48
Diluted	$ 0.42	$ 0.48
Weighted average number of common shares outstanding
Basic	2,712	2,693
Diluted	2,755	2,707

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2017	Jul. 31, 2016
Statement of Comprehensive Income [Abstract]
Net earnings	$ 1,192	$ 1,330
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	75	(26)
Change in fair value of cash flow hedges	8	4
Other comprehensive income (loss)	83	(22)
Comprehensive income, net of tax	1,275	1,308
Less: comprehensive income attributable to the noncontrolling interest	44	30
Comprehensive income attributable to Kewaunee Scientific Corporation	$ 1,231	$ 1,278

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity - 3 months ended Jul. 31, 2017 - 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, 2017	$ 42,883	$ 6,789	$ 2,695	$ (53)	$ 39,771	$ (6,319)
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	9	1	8
Stock based compensation	52		52
Balance at Jul. 31, 2017	$ 43,769	$ 6,790	$ 2,755	$ (53)	$ 40,513	$ (6,236)

Consolidated Statement of Stoc5

Consolidated Statement of Stockholders' Equity (Parenthetical)	3 Months Ended
	Jul. 31, 2017$ / sharesshares
Cash dividends paid, per share | $ / shares	$ 0.15
Stock options exercised, shares	500
Common Stock [Member]
Stock options exercised, shares	500
Additional Paid-in Capital [Member]
Stock options exercised, shares	500
Retained Earnings [Member]
Cash dividends paid, per share | $ / shares	$ 0.15

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 31, 2017	Apr. 30, 2017
Current Assets:
Cash and cash equivalents	$ 12,021	$ 12,506
Restricted cash	1,471	1,435
Receivables, less allowance: $193, $191, on each respective date	23,635	29,889
Inventories	17,001	14,935
Prepaid expenses and other current assets	1,556	1,047
Total Current Assets	55,684	59,812
Property, plant and equipment, at cost	51,998	51,568
Accumulated depreciation	(38,222)	(37,541)
Net Property, Plant and Equipment	13,776	14,027
Deferred income taxes	3,113	3,158
Other	3,991	3,919
Total Other Assets	7,104	7,077
Total Assets	76,564	80,916
Current Liabilities:
Short-term borrowings and interest rate swaps	3,539	3,591
Current portion of long-term debt	1,105	918
Accounts payable	11,933	11,995
Employee compensation and amounts withheld	1,776	2,765
Deferred revenue	773	5,806
Other accrued expenses	2,487	1,852
Total Current Liabilities	21,613	26,927
Long-term debt	2,139	2,431
Accrued pension and deferred compensation costs	8,625	8,301
Total Liabilities	32,377	37,659
Commitments and Contingencies
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	2,755	2,695
Retained earnings	40,513	39,771
Accumulated other comprehensive loss	(6,236)	(6,319)
Common stock in treasury, at cost, 3 shares, on each date	(53)	(53)
Total Kewaunee Scientific Corporation Stockholders' Equity	43,769	42,883
Noncontrolling interest	418	374
Total Equity	44,187	43,257
Total Liabilities and Equity	$ 76,564	$ 80,916

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jul. 31, 2017	Apr. 30, 2017
Statement of Financial Position [Abstract]
Allowance for receivables	$ 193	$ 191
Common stock, par value	$ 2.50	$ 2.50
Common stock, shares authorized	5,000	5,000
Common stock, shares issued	2,716	2,715
Common stock, shares outstanding	2,713	2,712
Treasury stock, shares	3	3

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2017	Jul. 31, 2016
Cash flows from operating activities:
Net earnings	$ 1,192	$ 1,330
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation	686	647
Bad debt provision	6	15
Stock based compensation expense	52	47
Benefit for deferred income tax expense	45	(39)
Change in assets and liabilities:
Decrease (increase) in receivables	6,248	(2,697)
Increase in inventories	(2,066)	(1,159)
(Decrease) increase in accounts payable and other accrued expenses	(416)	1,995
(Decrease) increase in deferred revenue	(5,033)	26
Other, net	(184)	(345)
Net cash provided by (used in) operating activities	530	(180)
Cash flows from investing activities:
Capital expenditures	(435)	(1,056)
Increase in restricted cash	(36)	(59)
Net cash used in investing activities	(471)	(1,115)
Cash flows from financing activities:
Dividends paid	(406)	(350)
Proceeds from short-term borrowings	14,697	15,840
Repayments on short-term borrowings	(14,749)	(12,700)
Payments on long-term debt	(105)	(105)
Net proceeds from exercise of stock options	9	103
Net cash (used in) provided by financing activities	(554)	2,788
Effect of exchange rate changes on cash	10	(4)
Increase (decrease) in cash and cash equivalents	(485)	1,489
Cash and cash equivalents, beginning of period	12,506	5,222
Cash and cash equivalents, end of period	$ 12,021	$ 6,711

Financial Information

Financial Information	3 Months Ended
	Jul. 31, 2017
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 2017 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, 2017 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.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Jul. 31, 2017
Text Block [Abstract]
Revenue Recognition	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.

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Jul. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	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.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Jul. 31, 2017
Earnings Per Share [Abstract]
Earnings Per Share	D. 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 39,200 shares were not included in the computation of diluted earnings per share for the three month period ended July 31, 2017, 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 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 effect would be anti-dilutive.

Inventories

Inventories	3 Months Ended
	Jul. 31, 2017
Inventory Disclosure [Abstract]
Inventories	E. Inventories Inventories consisted of the following (in thousands): July 31, 2017 April 30, 2017 Finished products $ 4,419 $ 3,179 Work in process 1,941 1,950 Raw materials 10,641 9,806 $ 17,001 $ 14,935 The Company uses the last-in, first-out (LIFO) method of valuing inventory for its domestic operations, which represents $14,527,000 of inventory at July 31, 2017 and $12,730,000 at April 30, 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.

Segment Information

Segment Information	3 Months Ended
	Jul. 31, 2017
Segment Reporting [Abstract]
Segment Information	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 months ended July 31, 2017 and 2016 (in thousands): Domestic International Corporate Total Three months ended July 31, 2017 Revenues from external customers $ 22,146 $ 11,735 $ — $ 33,881 Intersegment revenues 4,085 868 (4,953 ) — Earnings (loss) before income taxes 1,816 1,370 (1,389 ) 1,797 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

Defined Benefit Pension Plans

Defined Benefit Pension Plans	3 Months Ended
	Jul. 31, 2017
Retirement Benefits [Abstract]
Defined Benefit Pension Plans	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; 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, 2017 and 2016. The Company expects to make contributions of $600,000 to the plans during fiscal year 2018. The Company assumed an expected long-term rate of return of 7.75% for the period ended July 31, 2017 as compared to 8.0% for the period ended July 31, 2016. Pension expense consisted of the following (in thousands): Three months ended Three months ended 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

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Jul. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	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 value 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 July 31, 2017 and April 30, 2017 (in thousands): July 31, 2017 Financial Assets Level 1 Level 2 Total Trading securities held in non-qualified compensation plans (1) $ 3,898 $ — $ 3,898 Cash surrender value of life insurance policies (1) — 75 75 Total $ 3,898 $ 75 $ 3,973 Financial Liabilities Non-qualified compensation plans (2) $ — $ 4,348 $ 4,348 Interest rate swap derivatives — 49 49 Total $ — $ 4,397 $ 4,397 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.

Reclassifications

Reclassifications	3 Months Ended
	Jul. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reclassifications	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.

New Accounting Standards

New Accounting Standards	3 Months Ended
	Jul. 31, 2017
Accounting Changes and Error Corrections [Abstract]
New Accounting Standards	J. New Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). This update outlines a new comprehensive revenue recognition model that supersedes most current revenue recognition guidance and requires companies 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. ASU 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 for the Company during the first quarter of our fiscal year 2019 and we do not plan to early adopt. ASU 2014-09 provides two methods of adopting the standard: using either a full retrospective approach or modified retrospective approach. We expect to elect the modified retrospective approach of adopting 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, results of operations, equity or cash flows. In July 2015, the FASB issued ASU 2015-11, “Inventory – Simplifying the Measurement of Inventory.” This guidance changes the measurement principle for inventory from the lower of cost or market to the lower of cost and net 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 transportation. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company adopted this standard effective May 1, 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.

New Accounting Standards (Polic

New Accounting Standards (Policies)	3 Months Ended
	Jul. 31, 2017
Accounting Changes and Error Corrections [Abstract]
New Accounting Standards	In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). This update outlines a new comprehensive revenue recognition model that supersedes most current revenue recognition guidance and requires companies 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. ASU 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 for the Company during the first quarter of our fiscal year 2019 and we do not plan to early adopt. ASU 2014-09 provides two methods of adopting the standard: using either a full retrospective approach or modified retrospective approach. We expect to elect the modified retrospective approach of adopting 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, results of operations, equity or cash flows. In July 2015, the FASB issued ASU 2015-11, “Inventory – Simplifying the Measurement of Inventory.” This guidance changes the measurement principle for inventory from the lower of cost or market to the lower of cost and net 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 transportation. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company adopted this standard effective May 1, 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.

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Jul. 31, 2017
Inventory Disclosure [Abstract]
Summary of Inventories	Inventories consisted of the following (in thousands): July 31, 2017 April 30, 2017 Finished products $ 4,419 $ 3,179 Work in process 1,941 1,950 Raw materials 10,641 9,806 $ 17,001 $ 14,935

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Jul. 31, 2017
Segment Reporting [Abstract]
Segment Information	The following table provides financial information by business segments for the three months ended July 31, 2017 and 2016 (in thousands): Domestic International Corporate Total Three months ended July 31, 2017 Revenues from external customers $ 22,146 $ 11,735 $ — $ 33,881 Intersegment revenues 4,085 868 (4,953 ) — Earnings (loss) before income taxes 1,816 1,370 (1,389 ) 1,797 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

Defined Benefit Pension Plans (

Defined Benefit Pension Plans (Tables)	3 Months Ended
	Jul. 31, 2017
Retirement Benefits [Abstract]
Pension Expenses	Pension expense consisted of the following (in thousands): Three months ended Three months ended 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

Fair Value of Financial Instr23

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Jul. 31, 2017
Fair Value Disclosures [Abstract]
Summary of Fair Value Hierarchy for Financial Assets and Liabilities Measured Recurring and Nonrecurring Basis	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 July 31, 2017 and April 30, 2017 (in thousands): July 31, 2017 Financial Assets Level 1 Level 2 Total Trading securities held in non-qualified compensation plans (1) $ 3,898 $ — $ 3,898 Cash surrender value of life insurance policies (1) — 75 75 Total $ 3,898 $ 75 $ 3,973 Financial Liabilities Non-qualified compensation plans (2) $ — $ 4,348 $ 4,348 Interest rate swap derivatives — 49 49 Total $ — $ 4,397 $ 4,397 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.

Derivative Financial Instrume24

Derivative Financial Instruments - Additional Information (Detail) - Interest Rate Swap Derivatives [Member]	May 31, 2013USD ($)
4.875% [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Outstanding long-term debt	$ 3,450,000
Fixed rate percentage	4.875%
4.37% [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Outstanding long-term debt	$ 2,600,000
Fixed rate percentage	4.37%
3.07% [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Outstanding long-term debt	$ 1,218,000
Fixed rate percentage	3.07%

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended
	Jul. 31, 2017	Jul. 31, 2016
Earnings Per Share [Abstract]
Anti-dilutive options exclude from computation of earning per share	39,200	110,000

Inventories - Summary of Invent

Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands	Jul. 31, 2017	Apr. 30, 2017
Inventory Disclosure [Abstract]
Finished products	$ 4,419	$ 3,179
Work in process	1,941	1,950
Raw materials	10,641	9,806
Total inventories	$ 17,001	$ 14,935

Inventories - Additional Inform

Inventories - Additional Information (Detail) - USD ($)	Jul. 31, 2017	Apr. 30, 2017
Inventories [Line Items]
LIFO inventory amount	$ 14,527,000	$ 12,730,000
International Subsidiaries [Member]
Inventories [Line Items]
Inventories measured using FIFO method	$ 2,474,000	$ 2,205,000

Segment Information - Additiona

Segment Information - Additional Information (Detail)	3 Months Ended
	Jul. 31, 2017Segment
Segment Reporting [Abstract]
Number of business segment	2

Segment Information - Segment I

Segment Information - Segment Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2017	Jul. 31, 2016
Segment Reporting Information [Line Items]
Revenues from external customers	$ 33,881	$ 37,279
Earnings (loss) before income taxes	1,797	2,100
Corporate [Member]
Segment Reporting Information [Line Items]
Intersegment revenues	(4,953)	(2,001)
Earnings (loss) before income taxes	(1,389)	(1,290)
Domestic [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues from external customers	22,146	29,637
Intersegment revenues	4,085	866
Earnings (loss) before income taxes	1,816	2,573
International [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues from external customers	11,735	7,642
Intersegment revenues	868	1,135
Earnings (loss) before income taxes	$ 1,370	$ 817

Defined Benefit Pension Plans -

Defined Benefit Pension Plans - Additional Information (Detail) - USD ($)	3 Months Ended
	Jul. 31, 2017	Jul. 31, 2016
Retirement Benefits [Abstract]
Employer contributions	$ 0	$ 0
Company expected contributions remainder of fiscal year	$ 600,000
Assumed as expected long-term rate of return	7.75%	8.00%

Defined Benefit Pension Plans31

Defined Benefit Pension Plans - Pension Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2017	Jul. 31, 2016
Retirement Benefits [Abstract]
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

Fair Value of Financial Instr32

Fair Value of Financial Instruments - Summary of Fair Value Hierarchy for Financial Assets and Liabilities Measured Recurring and Nonrecurring Basis (Detail) - USD ($) $ in Thousands	Jul. 31, 2017	Apr. 30, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Assets	$ 3,973	$ 3,823
Financial Liabilities	4,397	4,248
Trading Securities Held in Non-Qualified Compensation Plans [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Assets	3,898	3,748
Cash Surrender Value of Life Insurance Policies [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Assets	75	75
Non Qualified Compensation Plans [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Liabilities	4,348	4,186
Interest Rate Swap Derivatives [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Liabilities	49	62
Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Assets	3,898	3,748
Level 1 [Member] | Trading Securities Held in Non-Qualified Compensation Plans [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Assets	3,898	3,748
Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Assets	75	75
Financial Liabilities	4,397	4,248
Level 2 [Member] | Cash Surrender Value of Life Insurance Policies [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Assets	75	75
Level 2 [Member] | Non Qualified Compensation Plans [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Liabilities	4,348	4,186
Level 2 [Member] | Interest Rate Swap Derivatives [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Liabilities	$ 49	$ 62

Fair Value of Financial Instr33

Fair Value of Financial Instruments - Summary of Fair Value Hierarchy for Financial Assets and Liabilities Measured Recurring and Nonrecurring Basis (Parenthetical) (Detail)	Jul. 31, 2017CompensationPlan
Regulatory Assets [Abstract]
Number of non-qualified compensation plans maintained	2