SYS-CON MEDIA Authors: Dana Gardner, Elizabeth White, Yeshim Deniz, Peter Silva, Blue Box Blog

News Feed Item

Kewaunee Scientific Reports Results for First Quarter

STATESVILLE, N.C., Aug. 26, 2014 /PRNewswire/ -- Kewaunee Scientific Corporation (Nasdaq: KEQU) today reported results for its first quarter ended July 31, 2014.

Sales for the quarter were $30,534,000, as compared to sales of $32,003,000 in the first quarter last year. Net earnings for the quarter were $1,234,000, or $0.47 per diluted share, as compared to net earnings of $1,587,000, or $0.61 per diluted share, in the first quarter of the prior year. However, both sales and earnings in the first quarter last year were records for the Company.

Domestic operations sales for the quarter were $24,248,000, a decline of 10% from $27,073,000 in last year's record quarter. The domestic laboratory construction marketplace continued to be challenging during the quarter for projects requiring summer delivery, and pricing remained very competitive. Increased project bidding opportunities were experienced in certain geographic areas of the country, and the Company's number of active outstanding quotations for larger laboratory construction projects is the highest in several years. International operations sales for the quarter were $6,286,000, an increase of 28% over sales of $4,930,000 in the first quarter last year. The Company continues to see good opportunities in the international markets, particularly in the growth markets of India and the Middle East.

The order backlog was $82.7 million at July 31, 2014, as compared to $89.0 million at April 30, 2014 and $71.1 million at July 31, 2013. The Company's backlog is expected to benefit as award decisions are made for the outstanding quotations discussed above.

The Company's balance sheet and financial condition remain strong. Unrestricted cash on hand was $4.4 million at the end of the quarter, unchanged from the end of the first quarter last year. Working capital was $27.5 million, as compared to $24.8 million at the end of the first quarter last year. Borrowings and related interest swaps under the Company's revolving credit facility were $5.2 million at the end of the quarter, as compared to $5.1 million at the end of the first quarter last year, and total bank borrowings and interest rate swaps were $9.7 million, as compared to $10.1 million at the end of the first quarter last year.

"We had a solid quarter, both domestically and internationally," said David M. Rausch, Kewaunee's President and Chief Executive Officer.  "Our Associates continue to do an excellent job controlling manufacturing and operating costs, strengthening our relationships with laboratory planners, architects, and customers, winning projects, and strengthening the Kewaunee name globally.

"I am excited about our first facility in China which opened on schedule earlier this month in Suzhou Industrial Park. For some time, we have identified China as one of our key growth markets, and this new facility, combined with an on-going expansion of our sales organization in the country, positions us to build on our business in this large and growing laboratory research market.

"Looking forward, we expect a good second quarter and fiscal year 2015 for sales and earnings. Our expectations are based on our strong order backlog, our projections that the softness in the domestic laboratory marketplace will improve, and anticipated increased opportunities in the international marketplace."

About Kewaunee Scientific
Founded in 1906, Kewaunee Scientific Corporation is a recognized global leader in the design, manufacture, and installation of laboratory, healthcare, and technical furniture products. Products include steel, wood, and laminate casework, fume hoods, adaptable modular systems, moveable workstations, stand-alone benches, biological safety cabinets, and epoxy resin worksurfaces and sinks.

The Company's corporate headquarters are located in Statesville, North Carolina. Direct sales offices are located in the United States, India, Singapore, and China. Three manufacturing facilities are located in Statesville serving the domestic and international markets, and one manufacturing facility is located in Bangalore, India serving the local and Asian markets. The Company's China headquarters, sales office, and assembly operation are located in Suzhou Industrial Park, China. Kewaunee Scientific's website is located at http://www.kewaunee.com.

This press release contains statements that the Company believes to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements regarding the Company's future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "predict," "believe" and similar words, expressions and variations of these words and expressions are intended to identify forward-looking statements. All forward-looking statements are subject to important factors, risks, uncertainties and assumptions, including industry and economic conditions that could cause actual results to differ materially from those described in the forward-looking statements. Additional information concerning these factors is contained in the Company's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this document. The Company assumes no obligation, and expressly disclaims any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise.


Kewaunee Scientific Corporation


Consolidated Statements of Operations (Unaudited)


(in thousands, except per share data)










Three months ended




July 31,




2014


2013


Net sales


$    30,534


$    32,003


Cost of products sold


24,386


25,427


Gross profit


6,148


6,576


Operating expenses


4,348


4,144


Operating earnings


1,800


2,432


Other income


126


80


Interest expense


(81)


(88)


Earnings before income taxes


1,845


2,424


Income tax expense


585


807


Net earnings


1,260


1,617


Less: net earnings attributable to the noncontrolling interest


26


30


Net earnings attributable to Kewaunee Scientific Corporation


$      1,234


$      1,587








Net earnings per share attributable to






    Kewaunee Scientific Corporation stockholders






       Basic


$0.47


$0.61


       Diluted


$0.47


$0.61








Weighted average number of common shares outstanding






       Basic


2,620


2,596


       Diluted


2,651


2,618

 


Kewaunee Scientific Corporation


Condensed Consolidated Balance Sheets


(in thousands)










July 31,


April 30,




2014


2014


Assets


(Unaudited)




Cash and cash equivalents


$      4,368


$      6,248


Restricted Cash


2,336


368


Receivables, less allowances


25,709


23,473


Inventories


12,213


11,938


Prepaid expenses and other current assets


2,077


1,326


    Total Current Assets


46,703


43,353


Net property, plant and equipment


14,483


14,570


Other assets


4,960


4,794


Total Assets


$    66,146


$    62,717








Liabilities and Equity






Short-term borrowings and interest rate swap


$      5,214


$      3,150


Current portion of long-term debt


421


421


Accounts payable


9,131


8,542


Other current liabilities


4,484


4,050


    Total Current Liabilities


19,250


16,163


Other non-current liabilities


11,618


12,330


    Total Liabilities


30,868


28,493


Noncontrolling interest


292


265


Kewaunee Scientific Corporation equity


34,986


33,959


    Total Equity


35,278


34,224


Total Liabilities and Equity


$    66,146


$    62,717

 

Contact:

D. Michael Parker


704/871-3290

 

SOURCE Kewaunee Scientific Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The cloud has transformed how we think about software quality. Instead of preventing failures, we must focus on automatic recovery from failure. In other words, resilience trumps traditional quality measures. Continuous delivery models further squeeze traditional notions of quality. Remember the venerable project management Iron Triangle? Among time, scope, and cost, you can only fix two or quality will suffer. Only in today's DevOps world, continuous testing, integration, and deployment upend...
Cloud and Big Data present unique dilemmas: embracing the benefits of these new technologies while maintaining the security of your organization's assets. When an outside party owns, controls and manages your infrastructure and computational resources, how can you be assured that sensitive data remains private and secure? How do you best protect data in mixed use cloud and big data infrastructure sets? Can you still satisfy the full range of reporting, compliance and regulatory requirements? In...
Chuck Piluso will present a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Speaker Bio: Prior to Data Storage Corporation (DSC), Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of ...
Between the compelling mockups and specs produced by your analysts and designers, and the resulting application built by your developers, there is a gulf where projects fail, costs spiral out of control, and applications fall short of requirements. In his session at DevOps Summit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, will present a new approach where business and development users collaborate – each using tools appropriate to their goals and expertise – to build mo...
There are lots of challenges in IoT around secure, scalable and business friendly infrastructure for enterprises. For large corporations, IoT implementations are one of the top priorities of the decade. All industries are seeing a competitive need to sustain by investing in IoT initiatives. The value addition comes from improved customer service, innovative product and additional revenue streams. The data from these IP-connected devices can be leveraged for a variety of business applica...
While Docker continues to be the darling of startups, enterprises and IT innovators around the world, networking continues to be a real mess. Indeed, managing the interaction between Docker containers and networks has always been fraught with complications. Without automation in networking, the vision of running Docker at scale and letting IT run the same apps unchanged on the laptop and in the data center or for any cloud cannot be realized.
To manage complex web services with lots of calls to the cloud, many businesses have invested in Application Performance Management (APM) and Network Performance Management (NPM) tools. Together APM and NPM tools are essential aids in improving a business's infrastructure required to support an effective web experience... but they are missing a critical component - Internet visibility. Internet connectivity has always played a role in customer access to web presence, but in the past few years u...
Working with Big Data is challenging, especially when decision makers depend on market insights and intelligence from your data but don't have quick access to it or find it unusable. In their session at 6th Big Data Expo, Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia; Zel Bianco, President, CEO and Co-Founder of Interactive Edge of Solgenia; and Ermanno Bonifazi, CEO & Founder at Solgenia, discussed how a revolutionary cloud-based BI along with mobile analytics is already c...
The Internet of Things Maturity Model (IoTMM) is a qualitative method to gauge the growth and increasing impact of IoT capabilities in an IT environment from both a business and technology perspective. In his session at @ThingsExpo, Tony Shan will first scan the IoT landscape and investigate the major challenges and barriers. The key areas of consideration are identified to get started with IoT journey. He will then pinpoint the need of a tool for effective IoT adoption and implementation, whic...
SYS-CON Events announced today that Secure Infrastructure & Services will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Secure Infrastructure & Services (SIAS) is a managed services provider of cloud computing solutions for the IBM Power Systems market. The company...
SYS-CON Events announced today that dcVAST, a leader in IT infrastructure management, support service and cloud service, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. dcVAST provides cutting-edge IT services and IT infrastructure management services. dcVAST builds robust systems that are simple, secure and serviceable. dcVAST’s IT infrastructure support and IT services expertise can help companies r...
"SOASTA built the concept of cloud testing in 2008. It's grown from rather meager beginnings to where now we are provisioning hundreds of thousands of servers on a daily basis on behalf of customers around the world to test their applications," explained Tom Lounibos, CEO of SOASTA, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
DevOps is all about agility. However, you don't want to be on a high-speed bus to nowhere. The right DevOps approach controls velocity with a tight feedback loop that not only consists of operational data but also incorporates business context. With a business context in the decision making, the right business priorities are incorporated, which results in a higher value creation. In his session at DevOps Summit, Todd Rader, Solutions Architect at AppDynamics, discussed key monitoring techniques...
DevOps Summit, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developmen...
“This win means a great deal to us because it is decided by the readers – the people who understand how use of our technology enables new insights that drive the business,” said Matt Davies, senior director, EMEA marketing, Splunk. “Splunk Enterprise enables organizations to improve service levels, reduce operations costs, mitigate security risks, enhance DevOps collaboration, create new product and service offerings and obtain deeper insight into customer behavior. Being named Best Business App...