Exhibit 99.1
Kewaunee Scientific Announces Second Quarter Results
STATESVILLE, N.C., Nov. 21 /PRNewswire-FirstCall/ -- Kewaunee Scientific
Corporation (Nasdaq: KEQU) today reported results for its second quarter ended
October 31, 2003.
Sales for the quarter were $24,384,000, an increase of 22.5% from sales in
the same period last year. Sales of laboratory products increased 24.7% to
$22,741,000, with increased sales occurring across all major product lines.
Sales of technical products were flat with the same period last year. The
order backlog remained healthy at $46.3 million at October 31, 2003.
Net earnings for the quarter were $418,000, or $.17 per diluted share.
Earnings for the quarter were reduced by after-tax employee severance costs of
$92,000. For the same period last year, a net loss of $124,000, or $.05 per
diluted share, was reported. The prior year net loss included after-tax non-
recurring charges of $470,000. Excluding the non-recurring costs in each
period, net earnings in the current quarter improved 47% over last year.
Earnings for the quarter benefited from the increased sales volume, improved
manufacturing efficiencies, and expense reduction activities.
"The second quarter was an excellent sales quarter," said William A.
Shumaker, President and Chief Executive Officer of Kewaunee. "Strong sales
increases occurred in all of our major laboratory markets. Our manufacturing
operations performed significantly better than the previous quarter, but we
are not satisfied with the level of earnings. A number of actions have been
taken to reduce costs and improve our profitability. We recently reduced our
workforce in Statesville by 9%. Additionally, we have reduced our raw
material costs, improved certain manufacturing processes, and reduced our on-
going overhead expenses in a number of areas. With these lower costs and the
volume of orders in the backlog scheduled for delivery in the third and fourth
quarters, we expect improved operating results for the remainder of our fiscal
year, particularly for the fourth quarter."
Sales for the six months ended October 31, 2003 were $48,597,000, an
increase of 23.6% from sales in the comparable period last year. Sales of
laboratory products increased 25.0%, while sales of technical products
increased 7.4%. Net earnings for the six months were $879,000, or $.35 per
diluted share, as compared to net earnings of $200,000, or $.08 per diluted
share, in the comparable period last year. Net earnings for the current year
were reduced by after-tax severance costs of $92,000 and were increased by a
net after-tax gain of $189,000 resulting from the resolution of a disputed
claim for laboratory furniture sold by the Company. Net earnings for the
comparable period last year were reduced by after-tax non-recurring charges of
$470,000.
Kewaunee Scientific Corporation is a recognized leader in the design,
manufacture, and installation of scientific and technical furniture. The
Company's corporate headquarters and manufacturing facilities are located in
Statesville, North Carolina. Kewaunee Scientific's website is located at
http://www.kewaunee.com.
Certain statements in this release constitute "forward-looking" statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements involve known and unknown risks, uncertainties
and other factors that could significantly impact results or achievements
expressed or implied by such forward-looking statements. These factors
include, but are not limited to, economic, competitive, governmental, and
technological factors affecting the Company's operations, markets, products,
services, and prices.
[see financial information on back of page]
Condensed Consolidated Statements of Operations (unaudited)
(in thousands, except per share data)
3 Months Ended 6 Months Ended
October 31 October 31
2003 2002 2003 2002
Net sales $24,384 $19,905 $48,597 $39,310
Cost of products sold 20,280 16,762 40,890 32,726
Gross profit 4,104 3,143 7,707 6,584
Operating expenses 3,321 3,362 6,322 6,260
Operating earnings (loss) 783 (219) 1,385 324
Other (expense) income (130) 27 (12) (14)
Earnings (loss) before
income taxes 653 (192) 1,373 310
Income tax expense
(credit) 235 (68) 494 110
Net earnings (loss) $418 $(124) $879 $200
Net earnings (loss)
per share
Basic $0.17 ($0.05) $0.35 $0.08
Diluted $0.17 ($0.05) $0.35 $0.08
Weighted average number
of common
shares outstanding
(in thousands)
Basic 2,486 2,479 2,485 2,475
Diluted 2,491 2,485 2,490 2,485
Condensed Consolidated Balance Sheets
(in thousands)
October 31 April 30
Assets 2003 2003
(unaudited)
Cash and cash equivalents $796 $520
Receivables, less allowances 21,930 16,138
Inventories 4,740 5,958
Prepaid expenses and other current
assets 1,433 2,370
Total current assets 28,899 24,986
Net property, plant and equipment 11,965 11,791
Other assets 6,461 6,877
Total Assets $47,325 $43,654
Liabilities and Stockholders' Equity
Short-term borrowings $4,740 $1,416
Current portion of long-term debt 1,118 681
Accounts payable 5,558 8,338
Other current liabilities 4,583 2,893
Total current liabilities 15,999 13,328
Long-term debt 1,490 1,249
Other non-current liabilities 3,303 3,139
Total stockholders' equity 26,533 25,938
Total Liabilities and Stockholders'
Equity $47,325 $43,654
Contact: D. Michael Parker
704/871-3290
SOURCE Kewaunee Scientific Corporation
-0- 11/21/2003
/CONTACT: D. Michael Parker of Kewaunee Scientific Corporation,
+1-704-871-3290/
/Web site: http://www.kewaunee.com /
(KEQU)
CO: Kewaunee Scientific Corporation
ST: North Carolina
IN: CPR
SU: ERN