Kewaunee Scientific Reports Third Quarter Results
Net Earnings Increase 150%, Revenues Increase 21%
Quarterly Dividend Declared
Exchange: NASDAQ (KEQU) Contact: D. Michael Parker
704/871-3290
STATESVILLE, NC, February 27, 2008--Kewaunee Scientific Corporation (NASDAQ:
KEQU) today reported results for its third quarter ended January 31, 2008.
Net earnings for the quarter increased to $802,000, or $0.31 per diluted share,
an increase of 150% over $321,000, or $0.13 per diluted share, in the same
period last year. Earnings for the quarter again benefited from continued strong
performance from the Company's domestic operations, improved profit margins, and
continued growth of its international operations.
Sales for the quarter were $21.9 million, an increase of 21% over sales of $18.0
million in the same period last year. Sales from domestic operations increased
to $17.7 million, up 20% from the same period last year. Sales from
international operations increased to $4.2 million, up 27% from the same period
last year.
Net earnings for the nine months ended January 31, 2008 were $2.7 million, or
$1.05 per diluted share, an increase of 163% from net earnings for the same
period last year of $1.0 million, or $0.41 per diluted share. The gross profit
margin for the nine-month period increased to 21.7% from 18.4% in the same
period last year. Sales for the nine months ended January 31, 2008 were $67.4
million, an increase of 15% from sales of $58.7 million in the same period last
year.
Incoming orders continued to be strong during the quarter. The order backlog
increased for the fifth consecutive quarter to a record $58.8 million at January
31, 2008, up from $54.9 million at the end of the previous quarter and $48.6
million at January 31, 2007.
The Company's balance sheet further strengthened during the quarter. Bank
borrowings and capital lease obligations declined to $4.2 million at January 31,
2008, down from $7.0 million at January 31, 2007. The debt-to-equity ratio was
..16-to-1 at the end of the quarter, down from .27-to-1 at the end of the same
period last year. Cash on hand was $2.9 million at the end of the quarter, as
compared to $1.9 million at the end of the same period last year. Working
capital was $14.7 million at January 31, 2008, up from $11.3 million at the end
of the same period last year.
"Our progress continued nicely in the third quarter," said William A. Shumaker,
President and Chief Executive Officer. "Our domestic and international
operations both contributed to our strong top-line and bottom-line growth. The
continued growth in sales, order backlog, and profit margins provides us strong
momentum as we go forward, positioning us well for continued growth and
profitability."
The Company also announced today that its Board of Directors approved a cash
dividend of seven cents per outstanding share to stockholders of record at the
close of business on March 10, 2008, payable on March 24, 2008.
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. The Company also has subsidiaries in Singapore and
Bangalore, India that serve the Asian markets. 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]
Consolidated Statements of Operations
(unaudited)
(in thousands, except per share data)
3 Months Ended 9 Months Ended
January 31 January 31
2008 2007 2008 2007
-------- -------- -------- --------
Net sales $ 21,883 $ 18,041 $ 67,394 $ 58,720
Cost of products sold 17,064 14,417 52,759 47,888
-------- -------- -------- --------
Gross profit 4,819 3,624 14,635 10,832
Operating expenses 3,293 2,829 9,811 8,365
-------- -------- -------- --------
Operating earnings 1,526 795 4,824 2,467
Other income (expense) (6) (11) (2) 33
Interest expense (86) (142) (302) (524)
-------- -------- -------- --------
Earnings before income taxes 1,434 642 4,520 1,976
Income tax expense 421 207 1,391 613
-------- -------- -------- --------
Earnings before minority interests 1,013 435 3,129 1,363
Minority interests 211 114 441 340
-------- -------- -------- --------
Net earnings $ 802 $ 321 $ 2,688 $ 1,023
======== ======== ======== ========
Net earnings per share
Basic $ 0.32 $ 0.13 $ 1.07 $ 0.41
Diluted $ 0.31 $ 0.13 $ 1.05 $ 0.41
Weighted average number of common
shares outstanding (in thousands)
Basic 2,543 2,492 2,523 2,492
Diluted 2,576 2,493 2,551 2,493
Condensed Consolidated Balance Sheets
(in thousands)
January 31 April 30
2008 2007
---------- ----------
Assets (unaudited)
- ------
Cash and cash equivalents $ 2,427 $ 2,231
Restricted cash 455 372
Receivables, less allowances 19,791 19,061
Inventories 6,130 5,869
Prepaid expenses and other current assets 1,222 981
---------- ----------
Total current assets 30,025 28,514
Net property, plant and equipment 11,568 11,255
Other assets 5,965 5,471
---------- ----------
Total Assets $ 47,558 $ 45,240
========== ==========
Liabilities and Stockholders' Equity
- ------------------------------------
Short-term borrowings $ 3,673 $ 3,489
Current obligations under capital leases 351 360
Accounts payable 7,669 8,437
Other current liabilities 3,661 3,897
---------- ----------
Total current liabilities 15,354 16,183
Obligations under capital leases 219 476
Other non-current liabilities 5,130 4,533
Total stockholders' equity 26,855 24,048
---------- ----------
Total Liabilities and Stockholders' Equity $ 47,558 $ 45,240
========== ==========