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Kewaunee Scientific Reports Results for Fiscal Year and Fourth Quarter

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Kewaunee Scientific Reports Results for Fiscal Year and Fourth Quarter

PR Newswire

STATESVILLE, N.C., June 26, 2018 /PRNewswire/ -- Kewaunee Scientific Corporation (NASDAQ:KEQU) today announced results for its fourth quarter and its fiscal year ended April 30, 2018.

Kewaunee Scientific Corporation (PRNewsFoto/Kewaunee Scientific Corporation)

Full Year, Fiscal Year 2018 Results:

  • Record sales of $158,050,000, an increase of 14.1% from the prior year.
  • Record pre-tax earnings of $9,480,000, an increase of 40.5% from the prior year.
  • Record net earnings of $5,188,000, an increase of 14.9% from the prior year which includes an unfavorable impact of $1,329,000 of additional tax expense recorded in the year to account for the implementation of the Tax Cuts and Jobs Act enacted on December 22, 2017. 
  • Record diluted earnings per share of $1.87, an increase of 12.7% from the prior year, which includes an unfavorable impact of $0.48 per diluted share of additional tax expense recorded in the year to account for the implementation of the Tax Cuts and Jobs Act enacted on December 22, 2017. 
  • Record order backlog of $116,335,000 at April 30, 2018, an increase of 2.5% from the prior year.

Fourth Quarter, Fiscal Year 2018 Results:

  • Sales of $44,508,000, an increase of 28.7% from the prior year fourth quarter.
  • Pre-tax earnings of $2,456,000, an increase of 34.5% from the prior year fourth quarter.
  • Net earnings of $1,433,000, an increase of 3.2% from the prior year fourth quarter.
  • Diluted earnings per share of $0.52, an increase of 2.0% from the prior year fourth quarter.

Record sales of $158,050,000 were delivered during fiscal year 2018, an increase of 14.1% from sales of $138,558,000 in the prior year. Domestic sales for the fiscal year were $114,594,000, an increase of 1.3% from sales of $113,081,000 in the prior year. International sales for the fiscal year were $43,456,000, an increase of 70.6% from sales of $25,477,000 in the prior year. Sales for the fiscal year ended April 30, 2018 reflect continued strength for Kewaunee's laboratory, healthcare, and technical furniture products in the US, Middle East, Indian, and Asian markets.

Pre-tax earnings for the fiscal year were $9,480,000, an increase of 40.5% compared to $6,746,000 for the prior period.  Net earnings increased 14.9% for the fiscal year to $5,188,000, or $1.87 per diluted share, as compared to net earnings of $4,515,000, or $1.66 per diluted share, for the year ended April 30, 2017. These results reflect the aforementioned unfavorable impact of $1,329,000, or $0.48 per diluted share, of additional tax expense recorded in the fiscal year.

The order backlog was $116.3 million at April 30, 2018, a record, up from $116.1 million at January 31, 2018, and $113.5 million at April 30, 2017. Incoming orders continued to be strong in all of our key markets, increasing the order backlog to record levels.  

Unrestricted cash on hand at April 30, 2018 was $9,716,000, as compared to $12,506,000 at April 30, 2017, and working capital was $35,942,000, as compared to $32,885,000. Short term debt was $5,052,000 at April 30, 2018, as compared to $4,509,000 at April 30, 2017, and total debt was $6,316,000 as compared to $6,940,000. The debt-to-equity ratio at April 30, 2018 was .10-to-1, as compared to .20-to-1 at April 30, 2017.

"The fourth quarter was an excellent quarter for the Company," said David M. Rausch, Kewaunee's President and Chief Executive Officer. "Our sales and pre-tax profit performance for the quarter were very strong in a very competitive laboratory furniture marketplace." 

"Fiscal year 2018 was another year of growth for Kewaunee as we achieved record sales and pre-tax earnings for the fourth year in a row," said David M. Rausch. "Kewaunee's world class global sales network continues to focus on providing the highest quality products and services to our customers." 

"Coming off four strong years, I remain optimistic about Kewaunee's future and anticipate sales and earnings growth in fiscal year 2019. The pace of activity, both domestically and internationally, remains solid as customers are investing in projects that require the products and services we provide."

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 and sales office are located in Shanghai, 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.

Contact:          Thomas D. Hull III
                        704/871-3290

 

Kewaunee Scientific Corporation

Consolidated Statements of Operations

(in thousands, except per share data)














Three months ended


Years ended




 April 30,


 April 30,




2018


2017


2018


2017




(Unaudited)


(Unaudited)



Net sales



$    44,508


$    34,579


$ 158,050


$ 138,558

Cost of products sold


35,574


27,247


126,030


111,951

Gross profit



8,934


7,332


32,020


26,607

Operating expenses


6,574


5,581


22,934


20,065

Operating earnings


2,360


1,751


9,086


6,542

Other income


169


138


693


496

Interest expense


(73)


(63)


(299)


(292)

Earnings before income taxes


2,456


1,826


9,480


6,746

Income tax expense


966


431


4,115


2,126

Net earnings



1,490


1,395


5,365


4,620

Less: net earnings attributable to









    the noncontrolling interest


57


7


177


105

Net earnings attributable to 









    Kewaunee Scientific Corporation


$      1,433


$      1,388


$      5,188


$      4,515











Net earnings per share attributable to









    Kewaunee Scientific Corporation stockholders







       Basic



$        0.53


$        0.51


$        1.91


$        1.67

       Diluted



$        0.52


$        0.51


$        1.87


$        1.66











Weighted average number of common









shares outstanding









       Basic



2,728


2,712


2,720


2,705

       Diluted



2,795


2,734


2,777


2,726






















Kewaunee Scientific Corporation




Condensed Consolidated Balance Sheets




(in thousands)


















 April 30,


April 30,








2018


2017



Assets





(Unaudited)





Cash and cash equivalents




$      9,716


$    12,506



Restricted Cash




1,242


1,435



Receivables, less allowances




32,660


29,889



Inventories





17,662


14,935



Prepaid expenses and other current assets




2,224


1,047



    Total Current Assets




63,504


59,812



Net property, plant and equipment




14,661


14,027



Other assets





6,193


7,077



Total Assets





$    84,358


$    80,916













Liabilities and Equity









Short-term borrowings and interest rate swaps



$      3,885


$      3,591



Current portion of long-term debt




1,167


918



Accounts payable




14,754


11,995



Other current liabilities




7,756


10,423



    Total Current Liabilities




27,562


26,927



Other non-current liabilities




9,275


10,732



    Total Liabilities




36,837


37,659



Noncontrolling interest




462


374



Kewaunee Scientific Corporation equity




47,059


42,883



    Total Equity




47,521


43,257



Total Liabilities and Equity




$    84,358


$    80,916



 

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SOURCE Kewaunee Scientific Corporation

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