STATESVILLE, N.C., Feb. 27 /PRNewswire-FirstCall/ -- Kewaunee Scientific Corporation (Nasdaq: KEQU) today reported results for its third quarter ended January 31, 2008 .
Net earnings for the quarter increased to $802,000 , or $0.31 per diluted share, an increase of 150% over $321,000 , or $0.13 per diluted share, in the same period last year. Earnings for the quarter again benefited from continued strong performance from the Company's domestic operations, improved profit margins, and continued growth of its international operations.
Sales for the quarter were $21.9 million , an increase of 21% over sales of $18.0 million in the same period last year. Sales from domestic operations increased to $17.7 million , up 20% from the same period last year. Sales from international operations increased to $4.2 million , up 27% from the same period last year.
Net earnings for the nine months ended January 31, 2008 were $2.7 million , or $1.05 per diluted share, an increase of 163% from net earnings for the same period last year of $1.0 million , or $0.41 per diluted share. The gross profit margin for the nine-month period increased to 21.7% from 18.4% in the same period last year. Sales for the nine months ended January 31, 2008 were $67.4 million , an increase of 15% from sales of $58.7 million in the same period last year.
Incoming orders continued to be strong during the quarter. The order backlog increased for the fifth consecutive quarter to a record $58.8 million at January 31, 2008 , up from $54.9 million at the end of the previous quarter and $48.6 million at January 31, 2007 .
The Company's balance sheet further strengthened during the quarter. Bank borrowings and capital lease obligations declined to $4.2 million at January 31, 2008 , down from $7.0 million at January 31, 2007 . The debt-to-equity ratio was .16-to-1 at the end of the quarter, down from .27-to-1 at the end of the same period last year. Cash on hand was $2.9 million at the end of the quarter, as compared to $1.9 million at the end of the same period last year. Working capital was $14.7 million at January 31, 2008 , up from $11.3 million at the end of the same period last year.
'Our progress continued nicely in the third quarter,' said William A. Shumaker, President and Chief Executive Officer. 'Our domestic and international operations both contributed to our strong top-line and bottom- line growth. The continued growth in sales, order backlog, and profit margins provides us strong momentum as we go forward, positioning us well for continued growth and profitability.'
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 10, 2008 , payable on March 24, 2008 .
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
2008 2007 2008 2007
Net sales $21,883 $18,041 $67,394 $58,720
Cost of products sold 17,064 14,417 52,759 47,888
Gross profit 4,819 3,624 14,635 10,832
Operating expenses 3,293 2,829 9,811 8,365
Operating earnings 1,526 795 4,824 2,467
Other income (expense) (6) (11) (2) 33
Interest expense (86) (142) (302) (524)
Earnings before income taxes 1,434 642 4,520 1,976
Income tax expense 421 207 1,391 613
Earnings before minority
interests 1,013 435 3,129 1,363
Minority interests 211 114 441 340
Net earnings $802 $321 $2,688 $1,023
Net earnings per share
Basic $0.32 $0.13 $1.07 $0.41
Diluted $0.31 $0.13 $1.05 $0.41
Weighted average number of
common shares outstanding
(in thousands)
Basic 2,543 2,492 2,523 2,492
Diluted 2,576 2,493 2,551 2,493
Condensed Consolidated Balance Sheets
(in thousands)
January 31 April 30
2008 2007
Assets (unaudited)
Cash and cash equivalents $2,427 $2,231
Restricted cash 455 372
Receivables, less allowances 19,791 19,061
Inventories 6,130 5,869
Prepaid expenses and other current assets 1,222 981
Total current assets 30,025 28,514
Net property, plant and equipment 11,568 11,255
Other assets 5,965 5,471
Total Assets $47,558 $45,240
Liabilities and Stockholders' Equity
Short-term borrowings $3,673 $3,489
Current obligations under capital leases 351 360
Accounts payable 7,669 8,437
Other current liabilities 3,661 3,897
Total current liabilities 15,354 16,183
Obligations under capital leases 219 476
Other non-current liabilities 5,130 4,533
Total stockholders' equity 26,855 24,048
Total Liabilities and Stockholders' Equity $47,558 $45,240
SOURCE Kewaunee Scientific Corporation
