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,



Net sales

$    30,534

$    32,003

Cost of products sold



Gross profit



Operating expenses



Operating earnings



Other income



Interest expense



Earnings before income taxes



Income tax expense



Net earnings



Less: net earnings attributable to the noncontrolling interest



Net earnings attributable to Kewaunee Scientific Corporation

$      1,234

$      1,587

Net earnings per share attributable to

    Kewaunee Scientific Corporation stockholders







Weighted average number of common shares outstanding








Kewaunee Scientific Corporation

Condensed Consolidated Balance Sheets

(in thousands)

July 31,

April 30,





Cash and cash equivalents

$      4,368

$      6,248

Restricted Cash



Receivables, less allowances






Prepaid expenses and other current assets



    Total Current Assets



Net property, plant and equipment



Other assets



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



Accounts payable



Other current liabilities



    Total Current Liabilities



Other non-current liabilities



    Total Liabilities



Noncontrolling interest



Kewaunee Scientific Corporation equity



    Total Equity



Total Liabilities and Equity

$    66,146

$    62,717



D. Michael Parker



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
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
SYS-CON Events announced today that Embotics, the cloud automation company, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Embotics is the cloud automation company for IT organizations and service providers that need to improve provisioning or enable self-service capabilities. With a relentless focus on delivering a premier user experience and unmatched customer support, Embotics is the fas...
DevOps is speeding towards the IT world like a freight train and the hype around it is deafening. There is no reason to be afraid of this change as it is the natural reaction to the agile movement that revolutionized development just a few years ago. By definition, DevOps is the natural alignment of IT performance to business profitability. The relevance of this has yet to be quantified but it has been suggested that the route to the CEO’s chair will come from the IT leaders that successfully ma...
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
The Quantified Economy represents the total global addressable market (TAM) for IoT that, according to a recent IDC report, will grow to an unprecedented $1.3 trillion by 2019. With this the third wave of the Internet-global proliferation of connected devices, appliances and sensors is poised to take off in 2016. In his session at @ThingsExpo, David McLauchlan, CEO and co-founder of Buddy Platform, discussed how the ability to access and analyze the massive volume of streaming data from millio...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
SYS-CON Events announced today that Interface Masters Technologies, a leader in Network Visibility and Uptime Solutions, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Interface Masters Technologies is a leading vendor in the network monitoring and high speed networking markets. Based in the heart of Silicon Valley, Interface Masters' expertise lies in Gigabit, 10 Gigabit and 40 Gigabit Eth...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?