Net Earnings for Year Increase 104%, Sales Increase 9.9%
STATESVILLE, N.C., June 24 /PRNewswire-FirstCall/ -- Kewaunee Scientific Corporation (Nasdaq: KEQU) today reported results for its fiscal year and fourth quarter ended April 30, 2008.
Net earnings for the year increased 104% to $3,134,000, or $1.23 per diluted share, up from net earnings of $1,540,000, or $0.62 per diluted share, in the prior year. Earnings benefited from a strong performance from the Company's domestic operations, improved profit margins, and continued growth of its international operations.
Sales for the year increased 9.9% to $89,510,000, up from sales of $81,441,000 in the prior year. Incoming orders were strong throughout the year, both domestic and international. The order backlog was a record year-end level of $58.7 million at April 30, 2008, up from $51.1 million at April 30, 2007. Sales from domestic operations increased to $73,768,000, up 10.8% from the prior year. Sales from international operations increased to $15,742,000, up 6.0% from the prior year.
"We made progress in a number of important areas in fiscal year 2008," said William A. Shumaker, President and Chief Executive Officer. "We are particularly pleased with the performance of our domestic operations, which were successful in increasing sales over all major product lines, building up our order backlog to record levels, and reducing manufacturing costs. Our international operations continued to execute well, with continued growth in sales, earnings, and order backlog during the year. In addition to operational accomplishments, our Statesville operations successfully moved to a new comprehensive ERP business management system late in the fourth quarter, and we successfully completed our project to become Sarbanes-Oxley Section 404 compliant.
"Our continued successes in fiscal year 2008 have made us a much stronger Company and keeps us on a solid track for long-term success and profitability," continued Mr. Shumaker. "Looking toward fiscal year 2009, we begin the year with a strong order backlog, good operating momentum, and healthy marketplaces for our products, both domestically and internationally. Like many businesses, we are challenged these days with extraordinary escalations in prices of raw materials, particularly steel and epoxy resin, energy, and transportation costs. We are aggressively pursuing strategies to minimize these increases."
The Company's financial condition further strengthened during the year. Working capital increased to $15.9 million at April 30, 2008, up from $12.3 million at the end of the prior year. Cash on hand at the end of the year increased to $4.3 million, up from $2.6 million at the end of the prior year. Bank borrowings and capital lease obligations were $5.0 million at year-end, as compared to $4.3 million at the end of the prior year, and the debt-to-equity ratio was .19-to-1 at year-end, as compared to .18-to-1 at the end of the prior year.
Net earnings for the fourth quarter were $446,000, or $.17 per diluted share, as compared to net earnings of $517,000, or $.21 per diluted share, in the prior year. Sales for the fourth quarter were $22,116,000, down slightly from sales of $22,721,000 in the same quarter of the prior year. Sales from domestic operations for the quarter were flat with the same quarter of the prior year, while sales from international operations declined slightly. Shipments and earnings were unfavorably impacted by inefficiencies and expenses associated with the Company's conversion during the quarter to a new comprehensive ERP system which incorporated all of the Company's business management systems.
As recently announced, the Company increased its quarterly cash dividend to eight cents per outstanding share, up from seven cents per share declared in the previous quarter.
Kewaunee Scientific Corporation is a recognized leader in the design, manufacture, and installation of scientific and technical furniture. The Company's corporate headquarters and domestic manufacturing facilities are located in Statesville, North Carolina. The Company also has subsidiaries in Singapore and Bangalore, India that serve the Asian and Middle East 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.
Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended Year Ended
April 30 April 30
2008 2007 2008 2007
Net sales $22,116 $22,721 $89,510 $81,441
Cost of products sold 17,579 18,467 70,338 66,355
Gross profit 4,537 4,254 19,172 15,086
Operating expenses 3,748 3,363 13,559 11,728
Operating earnings 789 891 5,613 3,358
Other income 49 20 47 53
Interest expense 8 (146) (294) (670)
income taxes 846 765 5,366 2,741
Income tax expense 342 289 1,733 902
Earnings before minority
interests 504 476 3,633 1,839
Minority interests in
subsidiaries (58) 41 (499) (299)
Net earnings $446 $517 $3,134 $1,540
Net earnings per share
Basic $0.17 $0.21 $1.24 $0.62
Diluted $0.17 $0.21 $1.23 $0.62
Weighted average number
of common shares
Basic 2,551 2,494 2,530 2,493
Diluted 2,577 2,502 2,557 2,495
Condensed Consolidated Balance Sheets
April 30 April 30
Assets 2008 2007
Cash and cash equivalents $3,784 $2,231
Restricted cash 480 372
Receivables, less allowances 20,561 19,061
Inventories 6,984 5,869
Prepaid expenses and other current assets 1,847 981
Total current assets 33,656 28,514
Net property, plant and equipment 11,825 11,255
Other assets 5,599 5,471
Total Assets $51,080 $45,240
Liabilities and Stockholders' Equity
Short-term borrowings $4,551 $3,489
Current obligations under capital leases 323 360
Accounts payable 8,929 8,437
Other current liabilities 3,933 3,897
Total current liabilities 17,736 16,183
Other non-current liabilities 6,397 5,009
Total stockholders' equity 26,947 24,048
Total Liabilities and Stockholders' Equity $51,080 $45,240
Contact: D. Michael Parker
|SOURCE Kewaunee Scientific Corporation|
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