Navigation Links
Kewaunee Scientific Reports Sales and Earnings For First Quarter
Date:8/24/2011

STATESVILLE, N.C., Aug. 24, 2011 /PRNewswire/ -- Kewaunee Scientific Corporation (Nasdaq: KEQU) today reported sales and earnings for its first quarter ended July 31, 2011.

Sales for the quarter were $26,321,000, up 5.9% from sales of $24,858,000 in the first quarter last year. Net earnings for the quarter were $22,000, or $0.01 per diluted share, down from net earnings of $657,000, or $0.25 per diluted share, in the first quarter of the prior year. Earnings for the quarter were unfavorably impacted by lower selling prices and higher costs paid for raw materials, particularly steel and epoxy resin. Additionally, costs associated with the startup of manufacturing for the Company's new laminate furniture product line reduced after-tax earnings by approximately $188,000, or $0.07 per diluted share.

Domestic sales for the quarter were $23,396,000, up from sales of $20,948,000 in the first quarter last year. The domestic marketplace for laboratory projects was generally unchanged from recent quarters, as demand for larger projects continued to hold up relatively well, while demand for small and mid-sized laboratory projects remained well below pre-recession levels. International sales for the quarter were $2,925,000, down from $3,910,000 in the first quarter last year.  Although not reflected in the sales figure, the recovery in the international laboratory marketplace appears to be well underway, as the Company is seeing and bidding increasing numbers of opportunities in Asia and the Middle East. The Company's expanded and strengthened international sales representation is helping the Company take early advantage of the recovery.

The order backlog grew to a record $69.7 million at July 31, 2011, up from $65.7 million at April 30, 2011 and $66.9 million at July 31, 2010.

"Dramatic increases in raw material prices, particularly steel and epoxy resin, which is petroleum-based, severely pressured profit margins during the quarter," said Mr. Shumaker, President and Chief Executive Officer.  "Facing these higher costs, we accelerated and expanded our cost reduction efforts throughout the Company. We now have identified and put in place new initiatives that are projected to reduce our annual costs by over $3 million. Savings related to many of these initiatives will begin in the second quarter and are expected to continue throughout the remainder of the fiscal year.

"Looking forward for the remainder of this fiscal year, we expect earnings for the second quarter to be much improved over the first quarter, although below last year's strong second quarter results," Mr. Shumaker continued. "We also expect the second half of the fiscal year to be much better than the first. Our projections are based on an analysis of orders in the order backlog, cost savings initiatives underway, increased sales opportunities in the international marketplace, and sales and earnings benefits from new products."

The Company continues to have a strong balance sheet. Working capital was $22.1 million at July 31, 2011, as compared to $18.9 million at the end of the first quarter last year. Cash on hand was $3.6 million at the end of the quarter, as compared to $2.3 million at the end of the first quarter last year.  Short-term borrowings under the Company's $14 million bank line of credit were $8.7 million at the end of the quarter, as compared to $7.5 million at the end of the first quarter last year, and total bank borrowings and capital lease obligations were $12.6 million, as compared to $7.7 million at the end of the first quarter last year.  The debt-to-equity ratio was .40-to-1 at the end of the quarter, as compared to .25-to-1 at the end of the first quarter last year.  

Kewaunee Scientific Corporation is a recognized leader in the design, manufacture, and installation of laboratory, technical and laminate furniture products. Laboratory furniture products include both steel and wood cabinetry, fume hoods, adaptable modular systems, moveable workstations, biological safety cabinets and epoxy resin counters and sinks. Technical furniture products include column systems, slotted-post systems, pedestal systems and stand-alone benches. Laminate furniture includes laminate casework, systems and related products for educational, healthcare and industrial applications.

The Company's corporate headquarters are located in Statesville, North Carolina. Three manufacturing facilities are located in Statesville, NC serving the domestic and international markets.  One manufacturing facility is located in Bangalore, India serving the local and Asian markets. The Company has subsidiaries in Singapore and India. 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 Parker704/871-3290Consolidated Statements of Operations [unaudited]

(in thousands, except per share data)Three Months EndedJuly 31

2011

July 31

2010Net sales

$26,321

$24,858Cost of products sold

22,133

19,859Gross profit

4,188

4,999Operating expenses

3,955

3,901Operating earnings

233

1,098Other expense

(1)

--Interest expense

(95)

(45)Earnings before income taxes

137

1,053Income tax expense

29

329Net earnings

108

724Less: net earnings attributable tothe noncontrolling interest

(86)

(67)Net earnings attributable toKewaunee Scientific Corporation

$22

$657Net earnings per share attributable toKewaunee Scientific Corporation stockholdersBasic

$0.01

$0.26Diluted

$0.01

$0.25Weighted average number of commonshares outstandingBasic

2,579

2,573Diluted

2,580

2,578Condensed Consolidated Balance Sheets

(in thousands)July 31

2011

April 30

2011Assets

[unaudited]Cash and cash equivalents

$2,652

$2,402Restricted cash

908

553Receivables, less allowances

27,282

27,346Inventories

10,261

10,466Prepaid expenses and other current assets

2,345

1,612   Total Current Assets

43,448

42,379Net property, plant and equipment

16,202

16,575Other assets

4,112

4,104Total Assets

$63,762

$63,058Liabilities and Stockholders' EquityShort-term borrowings

$8,672

$6,588Current obligations under capital leases and long-term debt

284

283Accounts payable

7,890

9,770Other current liabilities

4,531

3,623   Total Current Liabilities

21,377

20,264Other non-current liabilities

9,440

9,778   Total Liabilities

30,817

30,042Noncontrolling interest

1,634

1,525Kewaunee Scientific Corporation equity

31,311

31,491   Total Equity

32,945

33,016Total Liabilities and Equity

$63,762

$63,058
'/>"/>

SOURCE Kewaunee Scientific Corporation
Copyright©2010 PR Newswire.
All rights reserved

Related medicine technology :

1. Kewaunee Scientific Reports Sales and Earnings for First Quarter
2. Kewaunee Scientific Corporation Declares Quarterly Dividend
3. John Russell Elected to Kewaunee Scientific Board of Directors
4. Kewaunee Scientific Corporation Declares Quarterly Dividend
5. Thomson Scientific Publishes The Ones to Watch - A Quarterly Review of Phase Changes in the Pharmaceutical Pipeline
6. Avicena Scientific Collaborator Advances Program for Using Energy Enhancing Molecules to Treat Neuromuscular Diseases
7. Boston Scientific Announces Schedule for European Society of Cardiology Congress 2007
8. Boston Scientific to Release Broad Range of Clinical Trial Data Reinforcing Safety and Efficacy of Taxus(R) Coronary Stent Systems at TCT 2007
9. Preliminary Results of Randomized Pilot Study Show Comparable Efficacy for OrbusNeichs Genous(TM) Bio-engineered R Stent(TM) and Boston Scientifics Taxus(R) Stent in Patients at High Risk of Restenosis
10. Boston Scientific PROMUS(TM) and TAXUS(R) Stents Continue Strong Performance in Safety and Efficacy Measures
11. Boston Scientifics Next-Generation Stent Shows Improved Clinical Outcomes in Complex Lesions
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:10/4/2017)... 4, 2017  According to the Centers for Disease Control and Prevention ... . PhysicianOne Urgent Care is helping communities across Massachusetts ... , by offering no-cost* flu shots through the end of the month. ... health insurance regulations. ... to get a flu shot is by the end of October, according ...
(Date:10/2/2017)... Mich. , Oct. 2, 2017 Diplomat ... 8th Day Software and Consulting, LLC , and ... 8th Day Software, based in Tennessee ... LLC. 8th Day expands EnvoyHealth,s service offerings for health ... development. "In an ...
(Date:10/2/2017)... , Oct. 2, 2017  AllianceRx Walgreens Prime, the ... by Walgreens and pharmacy benefit manager Prime Therapeutics LLC ... brand, which included the unveiling of new signage at ... as well as at a few other company-owned facilities ... brand to patients, some of whom will begin to ...
Breaking Medicine Technology:
(Date:10/12/2017)... ... 2017 , ... First Healthcare Compliance (FHC), an industry leader ... range of technology and learning solutions at the 68th Annual American Healthcare Association ... held October 14–18, 2017 at the Mandalay Bay Resort in Las Vegas, Nevada. ...
(Date:10/12/2017)... ... October 12, 2017 , ... IsoComforter, Inc. ( ... today the introduction of an innovative new design of the shoulder pad. The ... get maximum comfort while controlling your pain while using cold therapy. By utilizing ice ...
(Date:10/12/2017)... ... October 12, 2017 , ... Dr. Parsa Mohebi, the ... medical article to the newly revamped Cosmetic Town journal section, featuring ... transplant procedure known as Follicular Unit Extraction (FUE). , Dr. Mohebi ...
(Date:10/12/2017)... ... October 12, 2017 , ... Women-owned and Grand Rapids-based ... and Brightest in Wellness® by Best and Brightest. OnSite Wellness will be honored ... 20 from 7:30 a.m. to 2 p.m. at the Henry Autograph Collection Hotel, ...
(Date:10/12/2017)... ... 2017 , ... Farm Forward joins Bon Appétit ... institutions in announcing the launch of the Leadership Circle , a program ... raised for food. , Founding members of the Leadership Circle also include Airbnb’s ...
Breaking Medicine News(10 mins):