STATESVILLE, N.C., Feb. 28 /PRNewswire-FirstCall/ -- Kewaunee Scientific Corporation (Nasdaq: KEQU) today reported results for its third quarter ended January 31, 2007 .
Net earnings for the quarter were $321,000 , or $0.13 per diluted share, as compared to a net loss of $555,000 , or $0.22 per diluted share, in the same period last year. Earnings for the quarter benefited from significantly improved manufacturing efficiencies, cost improvement initiatives, and lower operating expenses.
Sales for the quarter were $18,041,000 , an increase of 2% over sales of $17,724,000 in the same period last year. Modestly lower domestic sales were offset by increased sales to international customers. Incoming orders were strong during the quarter. The order backlog increased to $48.6 million at January 31, 2007 , up from $34.3 million at October 31, 2006 and $36.4 million at April 30, 2006 .
'This quarter was an outstanding quarter for incoming orders,' said William A. Shumaker, President and Chief Executive Officer. 'Our order backlog increased by $14.3 million during the quarter and included several prestigious laboratory furniture projects. This improved backlog will contribute nicely to our sales and earnings going forward.
'I continue to be pleased with the improved performance of our
manufacturing operations, as we are achieving much-improved manufacturing
efficiencies and lower manufacturing costs,'
The Company's financial condition remains strong. Cash on hand at the end of the quarter was $1.9 million , up from $1.3 million at April 30, 2006 . Working capital was $11.3 million , up from $11.0 million at April 30, 2006 . Total bank debt and capital lease obligations at January 31, 2007 were $7.0 million , down from $9.1 million at April 30, 2006 , resulting in a debt to equity ratio of .27-to-1 at the end of the quarter.
Net earnings for the nine months ended January 31, 2007 were $1,023,000 , or $0.41 per diluted share. Net earnings for the comparable period of the prior year, which benefited from an after-tax gain of $540,000 related to the sale of the Company's property in Texas, were $447,000 , or $0.18 per diluted share. Excluding this gain on the sale of property, the net loss in the prior year period was $93,000 , or $0.04 per diluted share. Sales for the nine months ended January 31, 2007 were $58,720,000 , a decrease of 3% from sales of $60,351,000 in the same period last year. Lower domestic sales were partially offset by increased sales to international customers.
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 9, 2007 , payable on March 23, 2007 .
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
Consolidated Statements of Operations
(unaudited)
(in thousands, except per share data)
3 Months Ended 9 Months Ended
January 31 January 31
2007 2006 2007 2006
Net sales $18,041 $17,724 $58,720 $60,351
Cost of products sold 14,417 15,278 47,888 51,034
Gross profit 3,624 2,446 10,832 9,317
Other operating income -- -- -- 884*
Operating expenses 2,829 3,079 8,365 8,952
Operating earnings (loss) 795 (633) 2,467 1,249
Other income (expense) (11) 3 33 (1)
Interest expense (142) (112) (524) (317)
Earnings (loss) before income taxes 642 (742) 1,976 931
Income tax expense (benefit) 207 (268) 613 326
Earnings (loss) before minority
interests 435 (474) 1,363 605
Minority interests 114 81 340 158
Net earnings (loss) $321 $(555) $1,023 $447*
Net earnings (loss) per share
Basic $0.13 $(0.22) $0.41 $0.18
Diluted $0.13 $(0.22) $0.41 $0.18
Weighted average number of common
shares outstanding (in thousands)
Basic 2,492 2,492 2,492 2,492
Diluted 2,493 2,494 2,493 2,493
* Includes a non-recurring pretax gain of $884,000 and an after-tax gain
of $540,000, or $.22 per diluted share, on the sale of property.
Condensed Consolidated Balance Sheets
(in thousands)
January 31 April 30
2007 2006
Assets (unaudited)
Cash and cash equivalents $1,466 $929
Restricted cash 413 399
Receivables, less allowances 18,474 23,199
Inventories 5,997 5,860
Prepaid expenses and other current assets 1,029 1,011
Total current assets 27,379 31,398
Net property, plant and equipment 11,451 11,163
Other assets 8,278 7,911
Total Assets $47,108 $50,472
Liabilities and Stockholders' Equity
Short-term borrowings $6,047 $8,216
Current obligations under capital leases 352 260
Accounts payable 6,032 9,074
Other current liabilities 3,605 2,823
Total current liabilities 16,036 20,373
Other non-current liabilities 4,992 4,553
Total stockholders' equity 26,080 25,546
Total Liabilities and Stockholders' Equity $47,108 $50,472
SOURCE Kewaunee Scientific Corporation
