STATESVILLE, N.C., June 18, 2019 /PRNewswire/ -- Kewaunee Scientific
Corporation (NASDAQ: KEQU) today announced results for its fourth
quarter and its fiscal year ended April 30, 2019.
Full Year, Fiscal Year 2019 Results:
- Sales of $146,550,000, a decrease
of 7.3% from the prior year.
- Pre-tax earnings of $2,134,000, a
decrease of 77.8% from the prior year.
- Net earnings of $1,529,000, a
decrease of 71.0% from the prior year.
- Diluted earnings per share of $0.55, a decrease of 71.1% from the prior
year.
- Order backlog of $100,829,000 at
April 30, 2019, a decrease of 13.3%
from the prior year.
Fourth Quarter, Fiscal Year 2019 Results:
- Sales of $34,748,000, a decrease
of 21.9%, as compared to sales of $44,508,000 in the prior year fourth
quarter.
- Pre-tax loss of $1,554,000 as
compared to pre-tax income of $2,640,000 in the prior year fourth quarter.
- Net loss of $1,270,000 as
compared to net income of $1,556,000
in the prior year fourth quarter.
- Diluted loss per share of $(0.46), as compared to diluted earnings per
share of $0.56 in the prior year
fourth quarter. One-time non-operating costs related to
management changes had an unfavorable impact of $0.31 per share on earnings for the
quarter.
Sales during fiscal year 2019 were $146,550,000, a decrease of 7.3% from sales of
$158,050,000 in the prior year.
Domestic sales for the fiscal year were $116,586,000, an increase of 1.7% from sales of
$114,594,000 in the prior year.
International sales for the fiscal year were $29,964,000, a decrease of 31.0% from sales of
$43,456,000 in the prior
year.
Pre-tax earnings for the fiscal year were $2,134,000, a decrease of 77.8% compared to
$9,619,000 for the prior
period. Net earnings decreased 71.0% for the fiscal year to
$1,529,000, or $0.55 per diluted share, as compared to net
earnings of $5,281,000, or
$1.90 per diluted share, for the year
ended April 30, 2018.
Pre-tax earnings were impacted by a significant decline in the
Company's Domestic operating volumes during the second half of the
fiscal year and higher raw material costs in steel and resin that
were not able to be passed along to customers. International
pre-tax earnings were impacted by the year-over-year decline in
sales as well as the year-over-year decline in the exchange rate of
the Indian rupee versus the US dollar. Finally, overall
profitability was impacted by one-time non-operating costs related
to management changes.
The Company's order backlog was $101
million at April 30, 2019,
compared to $96 million at
January 31, 2019, but lower than the
$116 million at April 30, 2018.
Unrestricted cash on hand at April 30,
2019 was $10,647,000, as
compared to $9,716,000 at
April 30, 2018. Working capital
was $32,624,000, as compared to
$36,775,000 at the end of the fourth
quarter last year. Short-term debt and interest rate swaps
were $9.5 million at April 30, 2019, as compared to $3.9 million at the end April 30, 2018, and long-term debt was
$1,413,000 at April 30, 2019 as compared to $2,431,000 at the end of April 30, 2018. The Company's debt-to-equity
ratio at April 30, 2019 was .23-to-1,
as compared to .13-to-1 at April 30, 2018.
"Fiscal year 2019 proved to be a challenging year for Kewaunee,"
said Thomas D. Hull III, Kewaunee's
President and Chief Executive Officer. "The second half of
the year was especially demanding, as the Company was unable to
convert the quotes necessary to achieve our desired operating
levels.
"With a renewed commercial focus, we are beginning to see a
reversal of booking trends from fiscal year 2019. We are
working actively with our channel partners to improve our win rate
and are encouraged by early results. Rebounding from fiscal
year 2019 performance is of paramount importance, and I believe the
pace of activity and investment in the marketplace is sufficient
for Kewaunee to achieve this objective."
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. The Company's 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
704/871-3290
Kewaunee
Scientific Corporation
|
Condensed
Consolidated Statements of Operations (Unaudited)
|
($ and shares in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
Twelve months
ended
|
|
|
April
30,
|
|
|
April
30,
|
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
Net sales
|
|
$
34,748
|
|
$
44,508
|
|
|
$
146,550
|
|
$ 158,050
|
Cost of products
sold
|
|
29,906
|
|
35,390
|
|
|
121,231
|
|
125,891
|
Gross
profit
|
|
4,842
|
|
9,118
|
|
|
25,319
|
|
32,159
|
Operating
expenses
|
|
6,176
|
|
5,880
|
|
|
23,207
|
|
22,240
|
Operating earnings
(loss)
|
|
(1,334)
|
|
3,238
|
|
|
2,112
|
|
9,919
|
Other income
(expense), net
|
|
(111)
|
|
(525)
|
|
|
389
|
|
(1)
|
Interest expense,
net
|
|
(109)
|
|
(73)
|
|
|
(367)
|
|
(299)
|
Earnings (loss)
before income taxes
|
|
(1,554)
|
|
2,640
|
|
|
2,134
|
|
9,619
|
Income tax expense
(benefit)
|
|
(357)
|
|
1,027
|
|
|
446
|
|
4,161
|
Net earnings
(loss)
|
|
(1,197)
|
|
1,613
|
|
|
1,688
|
|
5,458
|
Less: net earnings
attributable to the noncontrolling interest
|
|
73
|
|
57
|
|
|
159
|
|
177
|
Net earnings (loss)
attributable to Kewaunee Scientific Corporation
|
$
(1,270)
|
|
$
1,556
|
|
|
$
1,529
|
|
$
5,281
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
per share attributable to
|
|
|
|
|
|
|
|
|
|
Kewaunee Scientific Corporation stockholders
|
|
|
|
|
|
|
|
|
|
Basic
|
|
($0.46)
|
|
$0.58
|
|
|
$
0.56
|
|
$
1.94
|
Diluted
|
|
($0.46)
|
|
$0.56
|
|
|
$
0.55
|
|
$
1.90
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
2,746
|
|
2,728
|
|
|
2,742
|
|
2,720
|
Diluted
|
|
2,746
|
|
2,795
|
|
|
2,794
|
|
2,777
|
Kewaunee
Scientific Corporation
|
Condensed
Consolidated Balance Sheets
|
($ in
thousands)
|
|
|
|
|
|
|
|
|
April
30,
|
|
April
30,
|
|
|
|
2019
|
|
2018
|
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
10,647
|
|
$
9,716
|
|
Restricted
cash
|
|
509
|
|
1,242
|
|
Receivables, less
allowances
|
|
33,259
|
|
32,660
|
|
Inventories
|
|
17,206
|
|
18,549
|
|
Prepaid expenses and
other current assets
|
|
3,736
|
|
2,224
|
|
Total Current Assets
|
|
65,357
|
|
64,391
|
|
Net property, plant
and equipment
|
|
16,462
|
|
14,661
|
|
Other
assets
|
|
5,404
|
|
6,031
|
|
Total
Assets
|
|
$
87,223
|
|
$
85,083
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Short-term borrowings
and interest rate swaps
|
|
$
9,513
|
|
$
3,885
|
|
Current portion of
long-term debt and lease obligations
|
|
1,184
|
|
1,167
|
|
Accounts
payable
|
|
15,190
|
|
14,754
|
|
Other current
liabilities
|
|
6,846
|
|
7,810
|
|
Total Current Liabilities
|
|
32,733
|
|
27,616
|
|
Other non-current
liabilities
|
|
6,787
|
|
9,275
|
|
Total Liabilities
|
|
39,520
|
|
36,891
|
|
Kewaunee Scientific
Corporation equity
|
|
47,100
|
|
47,730
|
|
Noncontrolling
interest
|
|
603
|
|
462
|
|
Total Stockholders' Equity
|
|
47,703
|
|
48,192
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
87,223
|
|
$
85,083
|
|
|
|
|
|
|
|
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SOURCE Kewaunee Scientific Corporation