Exhibit 99.1
KEWAUNEE SCIENTIFIC REPORTS RESULTS FOR FIRST QUARTER
STATESVILLE, N.C., Aug. 24 /PRNewswire-FirstCall/ -- Kewaunee Scientific
Corporation (Nasdaq: KEQU) today reported results for its first quarter ended
July 31, 2005.
Net earnings for the quarter were $763,000, or $0.31 per diluted share.
Excluding a gain on the sale of property, net earnings for the quarter were
$223,000, or $0.09 per diluted share, as compared to net earnings of $193,000,
or $0.08 per diluted share, in the same quarter last year. The previously
reported sale of the Company's plant site in Lockhart, Texas resulted in an
after-tax gain of $540,000, or $0.22 per diluted share.
Sales for the quarter were $20,308,000, slightly above sales of $20,288,000
in the same period last year, and 5.7% above the previous quarter. The
laboratory furniture marketplace continued its improvement during the quarter.
The favorable impact of this improved marketplace on sales and earnings was
partially offset by a softer marketplace for technical furniture. Order activity
continued to improve, as in-coming orders of $20.4 million were the highest
level in the past five quarters. The order backlog at July 31, 2005 increased to
$40.7 million, as compared to $39.6 million at July 31, 2004, and was up
slightly from April 30, 2005.
The Company's balance sheet remains strong. Total debt at July 31, 2005 was
$6.1 million, down from $9.8 million at July 31, 2004, while cash on hand at the
end of the quarter was $1.0 million. Book value per share was $10.66 at July 31,
2005.
"The laboratory furniture marketplace continues to improve," said William A.
Shumaker, President and Chief Executive Officer. "Our recent quoting activity
for projects over $1 million is the highest in several years. Although larger
projects have delivery dates usually between 6-18 months from the order award
date, this increased activity bodes well for the long-term. Our efforts to
reduce raw material costs have been successful in obtaining more competitive
pricing from new and existing suppliers, and we are aggressively expanding this
effort.
"Looking forward," Mr. Shumaker continued, "We expect progress to continue
in most of our markets for the remainder of the fiscal year. The gradual
improvement of the laboratory furniture market is projected to continue, but we
do not yet see a strong improvement in sales for our technical furniture
business. Our subsidiaries in India and Singapore continue to grow and
contribute nicely, though modestly, to our sales and profits. We are
particularly pleased to see improvement in the Singapore marketplace, which has
been soft the past year."
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 September 8, 2005, payable on September 23, 2005.
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.
Contact: D. Michael Parker
704/871-3290
Condensed Consolidated Statements of Operations [unaudited]
(in thousands, except per share data)
Three Months Ended
---------------------------
July 31 July 31
2005 2004
------------ ------------
Net sales $ 20,308 $ 20,288
Cost of products sold 16,922 16,912
Gross profit 3,386 3,376
Operating expenses 2,920 3,046
Operating earnings 466 330
Other income 879 46
Interest expense (87) (86)
Earnings before income taxes 1,258 290
Income tax expense 457 100
Earnings before minority interests 801 190
Minority interests 38 (3)
Net earnings $ 763* $ 193
Net earnings per share
Basic $ 0.31 $ 0.08
Diluted $ 0.31 $ 0.08
Weighted average number of common
shares outstanding (in thousands)
Basic 2,492 2,490
Diluted 2,492 2,500
* Includes a non-recurring after-tax gain on the sale of property in the
amount of $540,000, or $.22 per diluted share.
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
July 31 April 30
2005 2005
------------ ------------
[unaudited]
Assets
Cash and cash equivalents $ 646 $ 225
Restricted cash 373 379
Receivables, less allowances 21,231 21,683
Inventories 4,938 3,542
Prepaid expenses and other current assets 1,237 951
Total current assets 28,425 26,780
Net property, plant and equipment 11,140 10,730
Other assets 7,328 8,702
Total Assets $ 46,893 $ 46,212
Liabilities and Stockholders' Equity
Short-term borrowings $ 5,038 $ 3,778
Current portion of long-term debt 652 931
Current obligations under capital leases 114 111
Accounts payable 7,443 8,558
Other current liabilities 3,219 3,021
Total current liabilities 16,466 16,399
Other non-current liabilities 3,852 3,824
Total stockholders' equity 26,575 25,989
Total Liabilities and Stockholders' Equity $ 46,893 $ 46,212
CONTACT: D. Michael Parker of Kewaunee Scientific Corporation,
+1-704-871-3290/ http://www.kewaunee.com /