Kewaunee Scientific Reports Results for Fourth Quarter and Fiscal Year
PR Newswire 20-Jun-2017 6:02 PM
STATESVILLE, N.C., June 20, 2017 /PRNewswire/ --Kewaunee Scientific Corporation (NASDAQ: KEQU) today announced results for its fourth quarter and its fiscal year ended April30, 2017.
Fourth Quarter 2017 Results:
Sales of $34,579,000, an increase of 1.4% from the prior year fourth quarter.
Net earnings of $1,388,000, an increase of 3.8% from the prior year fourth quarter.
Diluted earnings per share of $0.51, an increase of 2.0% from the prior year fourth quarter.
Full Year Fiscal 2017 Results:
Record sales of $138,558,000, an increase of 7.7% from the prior year.
Record net earnings of $4,515,000, an increase of 18.8% from the prior year.
Diluted earnings per share of $1.66, an increase of 16.9% from the prior year.
Backlog grew to a record $113,520,000, an increase of 12.9% from the prior year.
Fourth Quarter 2017 Commentary Sales for the fourth quarter were $34,579,000, up 1.4% from sales of $34,090,000 in the same period of the prior year. Net earnings for the quarter were $1,388,000, or $0.51 per diluted share, compared to net earnings of $1,337,000, or $0.50 per diluted share, in the same period of the prior year.
Sales from domestic operations for the quarter were $29,920,000, up 10.7% from sales of $27,030,000 in the same period of the prior year as project activity continues to increase across the markets served. Sales from international operations were $4,659,000, down 34.0% from sales of $7,060,000 in the same period of the prior year as construction delays impacted multiple customer orders within the period.
"The strong results in the fourth quarter were varied, with domestic operations delivering their strongest quarter of fiscal year 2017 while international operations were significantly impacted by a number of projects that were delayed, for various reasons beyond our control, impacting our ability to deliver product to job sites," said David M. Rausch, Kewaunee's Chief Executive Officer.
Full Fiscal Year 2017 Commentary Record sales of $138,558,000 were delivered during fiscal year 2017, an increase of 7.7% from sales of $128,626,000 in the prior year. Record net earnings for the year were $4,515,000, or $1.66 per diluted share, up 16.9% from net earnings of $3,802,000, or $1.42 per diluted share, in the prior year. Record sales were again generated due to the overall strength of the laboratory furniture markets domestically, as well as in India and the Middle East.
Sales from domestic operations for the year were $113,081,000, up 9.7% from sales of $103,047,000 in the prior year. Domestic sales grew when compared to the prior year, driven by increased activity across our dealer and distribution networks as well as with end-users. International sales for fiscal year 2017 were $25.5 million, relatively unchanged from fiscal year 2016 sales of $25.6 million.
The order backlog was $113.5 million at April 30, 2017, a record, up from $106.9 million at January 31, 2017, and $100.5 million at April 30, 2016. Incoming orders continued to be strong in all of our key markets, increasing the order backlog to record levels.
Unrestricted cash on hand at April 30, 2017 was $12,506,000, as compared to $5,222,000 at April 30, 2016, and working capital was $32,885,000, as compared to $30,007,000. Short term debt was $4,509,000 at April 30, 2017, as compared to $4,239,000 at April 30, 2016, and long-term debt was $2,431,000 as compared to $3,349,000. The debt-to-equity ratio at April 30, 2017 was .20-to-1, unchanged from April 30, 2016.
"Fiscal year 2017 was another year of continued growth for Kewaunee as we achieved record sales and net earnings," said David M. Rausch. "The Kewaunee Associates continue to focus on delivering world-class products to our customers, and our success is a testament to their dedication. The Company finished the year with another strong backlog and continues to focus on productivity and efficiency projects that I believe will continue to enhance the Company's long-term success.
"Coming off three strong years, I continue to be optimistic about Kewaunee's future and anticipate continued sales and earnings growth in fiscal year 2018. The pace of activity, both domestically and internationally, remains solid as customers continue to invest in projects that require the products and services that we provide."
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 and sales office are located in Shanghai, 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.
Contact: Thomas D. Hull III
Kewaunee Scientific Corporation Consolidated Statements of Operations (in thousands, except per share data) Three months ended Years ended April 30, April 30, 2017 2016 2017 2016 (Unaudited) (Unaudited) Net sales $ 34,579 $ 34,090 $ 138,558 $ 128,626 Cost of products sold 27,247 27,245 111,951 104,918 Gross profit 7,332 6,845 26,607 23,708 Operating expenses 5,581 4,847 20,065 18,010 Operating earnings 1,751 1,998 6,542 5,698 Other income 138 51 496 347 Interest expense (63) (70) (292) (306) Earnings before income taxes 1,826 1,979 6,746 5,739 Income tax expense 431 620 2,126 1,862 Net earnings 1,395 1,359 4,620 3,877 Less: net earnings attributable to the noncontrolling interest 7 22 105 75 Net earnings attributable to Kewaunee Scientific Corporation $ 1,388 $ 1,337 $ 4,515 $ 3,802 Net earnings per share attributable to Kewaunee Scientific Corporation stockholders Basic $ 0.51 $ 0.50 $ 1.67 $ 1.43 Diluted $ 0.51 $ 0.50 $ 1.66 $ 1.42 Weighted average number of common shares outstanding Basic 2,712 2,685 2,705 2,667 Diluted 2,734 2,699 2,726 2,687 Kewaunee Scientific Corporation Condensed Consolidated Balance Sheets (in thousands) April 30, April 30, 2017 2016 Assets (Unaudited) Cash and cash equivalents $ 12,506 $ 5,222 Restricted Cash 1,435 1,567 Receivables, less allowances 29,889 27,835 Inventories 14,935 15,626 Prepaid expenses and other current assets 1,047 707 Total Current Assets 59,812 50,957 Property, plant and equipment, net 14,027 14,118 Other assets 6,558 7,330 Total Assets $ 80,397 $ 72,405 Liabilities and Equity Short-term borrowings and interest rate swaps $ 3,591 $ 3,818 Current portion of long-term debt 918 421 Accounts payable 11,995 11,722 Other current liabilities 10,423 4,989 Total Current Liabilities 26,927 20,950 Other non-current liabilities 9,333 12,903 Total Liabilities 36,260 33,853 Noncontrolling interest 374 310 Kewaunee Scientific Corporation equity 43,763 38,242 Total Equity 44,137 38,552 Total Liabilities and Stockholders' Equity $ 80,397 $ 72,405
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SOURCE Kewaunee Scientific Corporation