Exhibit 99.1
Kewaunee Scientific Announces Third Quarter Results
STATESVILLE, N.C., Feb. 23 /PRNewswire/ -- Kewaunee Scientific Corporation
(Nasdaq: KEQU) today reported results for its third quarter ended
January 31, 2004.
Sales for the quarter were $21,454,000, an increase of 31% from sales of
$16,381,000 in the same period last year. Net earnings for the quarter were
$291,000, or $.12 per diluted share, as compared to net earnings of $42,000,
or $.02 per diluted share, in the same period last year. Net earnings of the
prior year included after-tax non-recurring charges of $160,000, or $.06 per
diluted share. The order backlog at January 31, 2004 was $42.5 million, as
compared to $46.3 million at the end of the second quarter.
Earnings for the quarter benefited from the increased sales volume,
improved manufacturing efficiencies, and cost reduction activities. Operating
expenses were 14.9% of sales for the quarter, as compared to 20.5% of sales in
the same period last year. Earnings were adversely affected by an unfavorable
product sales mix and continued aggressive pricing in the marketplace. The
unfavorable product sales mix resulted from a significant portion of the
increase in sales being for non-manufactured products and installation
services, which traditionally have lower profit margins than products
manufactured by the Company.
"We had another strong sales quarter," said William A. Shumaker, President
and Chief Executive Officer of Kewaunee. "I was also pleased with the
improved performance of our manufacturing operations, as well as the success
of our cost reduction activities. Regarding the fourth quarter, we expect
another good sales quarter with an improved product sales mix as compared to
the third quarter."
Sales for the nine months ended January 31, 2004 were $70,051,000, an
increase of 26% from sales of $55,691,000 in the comparable period last year.
Net earnings for the nine months were $1,170,000, or $.47 per diluted share,
as compared to net earnings of $242,000, or $.10 per diluted share, in the
comparable period last year. Net earnings for the nine months of the current
year were increased by a net after-tax gain of $189,000, or $.08 per diluted
share, 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 $605,000, or $.24 per
diluted share.
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.
Condensed Consolidated Statements of Operations (unaudited)
(in thousands, except per share data)
3 Months Ended 9 Months Ended
January 31 January 31
2004 2003 2004 2003
Net sales $21,454 $16,381 $70,051 $55,691
Cost of products sold 17,736 12,919 58,626 45,645
Gross profit 3,718 3,462 11,425 10,046
Operating expenses 3,206 3,361 9,528 9,621
Operating earnings 512 101 1,897 425
Other expense (57) (59) (69) (73)
Earnings before income taxes 455 42 1,828 352
Income tax expense 164 -- 658 110
Net earnings $291 $42 $1,170 $242
Net earnings per share
Basic $0.12 $0.02 $0.47 $0.10
Diluted $0.12 $0.02 $0.47 $0.10
Weighted average number of common
shares outstanding (in thousands)
Basic 2,486 2,480 2,485 2,477
Diluted 2,499 2,487 2,493 2,486
Condensed Consolidated Balance Sheets
(in thousands)
January 31 April 30
Assets 2004 2003
(unaudited)
Cash and cash equivalents $1,063 $520
Receivables, less allowances 22,657 16,138
Inventories 4,585 5,958
Prepaid expenses and other current assets 1,218 2,370
Total current assets 29,523 24,986
Net property, plant and equipment 11,558 11,791
Other assets 6,285 6,877
Total Assets $47,366 $43,654
Liabilities and Stockholders' Equity
Short-term borrowings $6,084 $1,416
Current portion of long-term debt 1,118 681
Accounts payable 5,477 8,338
Other current liabilities 3,486 2,893
Total current liabilities 16,165 13,328
Long-term debt 1,211 1,249
Other non-current liabilities 3,339 3,139
Total stockholders' equity 26,651 25,938
Total Liabilities and Stockholders' Equity $47,366 $43,654
Contact: D. Michael Parker
704/871-3290
SOURCE Kewaunee Scientific Corporation
-0- 02/23/2004
/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