Exhibit 99.1
KEWAUNEE SCIENTIFIC REPORTS RESULTS FOR SECOND QUARTER
STATESVILLE, N.C., Nov. 22 /PRNewswire-FirstCall/ -- Kewaunee Scientific
Corporation (Nasdaq: KEQU) today reported results for its second quarter ended
October 31, 2005. Sales for the quarter were $22,319,000, an increase of
21.5% over the same period last year and an increase of 9.9% over the previous
quarter. Net earnings for the quarter were $239,000, or $0.10 per diluted
share, as compared to net earnings of $108,000, or $0.04 per diluted share, in
the same quarter last year.
The laboratory products marketplace continued its improvement during the
quarter, with sales increases experienced in all our major product lines and in
our international business. Our outstanding quotations for projects of greater
than $1 million continue to be at the highest level in several years. The order
backlog was $35.2 million at October 31, 2005, as compared to $38.6 million at
October 31, 2004.
Earnings for the quarter were unfavorably impacted by aggressive pricing in
the marketplace and continuing higher raw material, energy, and transportation
costs. The impact of these factors was partially offset by reduced costs
achieved from on-going cost reduction activities, including the diligent pursuit
of more competitive pricing from new and existing suppliers.
The Company's financial condition remains strong. Total debt at October 31,
2005 was $6.4 million, down from $7.6 million at October 31, 2004, while cash on
hand at the end of the quarter was $1.0 million. Operations provided cash of
$900,000 during the quarter. Book value per share was $10.67 at October 31,
2005.
"The marketplace for our products continues to be much improved over last
year," said William A. Shumaker, President and Chief Executive Officer of
Kewaunee. "However, we have much more work to do to achieve acceptable profit
margins, and we continue to work relentlessly toward this goal. A number of cost
improvement projects are currently ongoing, including significant capital
projects in all three of our Statesville plants. Although the completion of
these projects will increase costs in our third quarter, which is traditionally
our weakest quarter, we feel they are important as we work toward reducing our
costs over the long term."
Sales for the six months ended October 31, 2005 were $42,627,000, an
increase of 10.3% over the comparable period last year. Net earnings for the six
months were $1,002,000, or $0.40 per diluted share. Excluding a gain on the sale
of our former Lockhart, Texas property in the first quarter, net earnings for
the six months were $462,000, or $0.18 per diluted share, as compared to net
earnings of $301,000, or $0.12 per diluted share, in the comparable period last
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 December 5, 2005, payable on December 19, 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 Six Months Ended
October 31 October 31
--------------------------- ----------------------------
2005 2004 2005 2004
------------ ------------ ------------ ------------
Net sales $ 22,319 $ 18,365 $ 42,627 $ 38,653
Cost of products sold 18,834 14,812 35,756 31,724
------------ ------------ ------------ ------------
Gross profit 3,485 3,553 6,871 6,929
Operating expenses 2,953 3,260 5,873 6,306
------------ ------------ ------------ ------------
Operating earnings 532 293 998 623
Other income (expense) 1 (6) 880 40
------------ ------------ ------------ ------------
Interest expense (118) (84) (205) (170)
------------ ------------ ------------ ------------
Earnings before
income taxes 415 203 1,673 493
Income tax expense 137 55 594 155
------------ ------------ ------------ ------------
Earnings before minority
interests 278 148 1,079 338
Minority interests 39 40 77 37
------------ ------------ ------------ ------------
Net earnings $ 239 $ 108 $ 1,002* $ 301
============ ============ ============ ============
Net earnings per share
Basic $ 0.10 $ 0.04 $ 0.40 $ 0.12
Diluted $ 0.10 $ 0.04 $ 0.40 $ 0.12
Weighted average number
of common shares
outstanding
(in thousands)
Basic 2,492 2,492 2,492 2,491
Diluted 2,493 2,494 2,493 2,497
*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)
October 31 April 30
2005 2005
------------ ------------
(unaudited)
Assets
- ------
Cash and cash equivalents $ 588 $ 225
Restricted Cash 367 379
Receivables, less allowances 21,058 21,683
Inventories 4,342 3,542
Prepaid expenses and other current assets 1,416 951
------------ ------------
Total current assets 27,771 26,780
Net property, plant and equipment 11,611 10,730
Other assets 7,563 8,702
------------ ------------
Total Assets $ 46,945 $ 46,212
============ ============
Liabilities and Stockholders' Equity
- ------------------------------------
Short-term borrowings $ 5,567 $ 3,778
Current portion of long-term debt 372 931
Current obligations under capital leases 137 111
Accounts payable 7,001 8,558
Other current liabilities 3,203 3,021
------------ ------------
Total current liabilities 16,280 16,399
Other non-current liabilities 4,077 3,824
Total stockholders' equity 26,588 25,989
------------ ------------
Total Liabilities and Stockholders' Equity $ 46,945 $ 46,212
============ ============
SOURCE Kewaunee Scientific Corporation
-0- 11/22/2005
/CONTACT: D. Michael Parker of Kewaunee Scientific Corporation,
+1-704-871-3290/
/Web site: http://www.kewaunee.com /
(KEQU)