In the news release, Kewaunee Scientific Reports Results for Third Quarter, issued 03-Mar-2020 by Kewaunee Scientific Corporation over PR Newswire, we are advised by the company that the date on the Condensed Consolidated Balance Sheets table should read "January 31, 2020" rather than "January 31, 2019" as originally issued inadvertently. The complete, corrected release follows:

Kewaunee Scientific Reports Results for Third Quarter

STATESVILLE, N.C., March 3, 2020 /PRNewswire/ -- Kewaunee Scientific Corporation (NASDAQ: KEQU) today reported results for its third quarter of fiscal year 2020, ended January 31, 2020.

Kewaunee Scientific Corporation (PRNewsFoto/Kewaunee Scientific Corporation)

Sales for the quarter were $34,225,000, a 5.7% increase from sales of $32,372,000 in the prior year third quarter. Domestic sales for the quarter were $26,699,000, up 5.9% from sales of $25,217,000 in the third quarter of last year.  International sales for the quarter were $7,526,000, up 5.2% from sales of $7,155,000 in the third quarter last year. The increase in Domestic sales was a result of increased activity in the Company's dealer and distribution sales channels. International sales increased year-over-year as a result of continued deliveries of a large order in the Middle East market.

Pre-tax loss for the quarter was $2,251,000 compared to a profit of $35,000 for the prior year period. Profitability was negatively impacted during the quarter by a restructuring that was initiated and substantially completed within the quarter, higher operating costs due to equipment down-time and a lighter manufacturing load in the quarter.  Profitability was also negatively impacted by a strategic order in the Middle East that the Company aggressively secured over two years ago at lower than normal margins.  The Company also elected to close its China operations, resulting in a one-time charge in the quarter for exiting the Chinese market. 

Net earnings for the third quarter were a loss of $1,918,000, or $0.70 per diluted share, as compared to a loss of $22,000, or $0.01 per diluted share, for the third quarter ended January 31, 2019.

The Company's order backlog was $93 million at January 31, 2020, as compared to $101 million at April 30, 2019 and $96 million at January 31, 2019.   The Company continues to have a strong volume of outstanding quotations globally and is aggressively pursuing these projects.

Total cash on hand was $6.1 million at the end of the quarter, as compared to $11.4 million at the end of the third quarter last year. Working capital was $27.7 million, as compared to $36.1 million at the end of the third quarter last year. Short-term debt and interest rate swaps were $4.0 million at the end of the quarter, as compared to $5.1 million at the end of the third quarter last year. There was no long-term debt at January 31, 2020 compared to $1,556,000 at the end of the third quarter last year. The debt-to-equity ratio at January 31, 2020 was .35-to-1, as compared to .14-to-1 at January 31, 2019. 

"Looking forward, we continue to focus on improving profitability through both short and long term actions.  These activities included the restructuring plans initiated and substantially completed during this quarter as well as a multi-year plan to invest in our manufacturing capabilities and information technology platform to improve our competitiveness." said Thomas D. Hull III, Kewaunee's President and Chief Executive Officer.  "For purposes of our fourth quarter, we are working to ensure that the Company's manufacturing volume is sufficient to operate our facilities efficiently, which in turn will drive an improvement in profitability."

The Company's corporate headquarters are located in Statesville, North Carolina. Direct sales offices are located in the United States, India, and Singapore.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. 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



Condensed Consolidated Statements of Operations (Unaudited)



($ and shares in thousands, except per share amounts)














Three months ended


NIne months ended



January 31,


January 31,



2020


2019


2020


2019

Net sales


$       34,225


$       32,372


$    113,283


$     111,802

Cost of products sold


28,947


27,142


94,743


91,325

Gross profit


5,278


5,230


18,540


20,477

Operating expenses


7,350


5,232


19,875


16,810

Operating earnings (loss)


(2,072)


(2)


(1,335)


3,667

Other income


(29)


113


43


279

Interest expense, net


(150)


(76)


(452)


(258)

Earnings (loss) before income taxes


(2,251)


35


(1,744)


3,688

Income tax expense


(350)


20


1,822


803

Net earnings (loss)


(1,901)


15


(3,566)


2,885

Less: net earnings attributable to the noncontrolling interest


17


37


59


86

Net earnings (loss) attributable to Kewaunee Scientific Corporation

$        (1,918)


$             (22)


$       (3,625)


$          2,799










Net earnings (loss) per share attributable to









    Kewaunee Scientific Corporation stockholders









       Basic


($0.70)


($0.01)


$          (1.32)


$            1.02

       Diluted


($0.70)


($0.01)


$          (1.32)


$            1.00










Weighted average number of common shares outstanding









       Basic


2,750


2,744


2,750


2,741

       Diluted


2,750


2,794


2,750


2,799

 

Kewaunee Scientific Corporation

Condensed Consolidated Balance Sheets

($ in thousands)








January 31,


 April 30,



2020


2019

Assets


(Unaudited)



Cash and cash equivalents


$         3,554


$       10,647

Restricted cash


2,509


509

Receivables, less allowances


27,409


33,259

Inventories


15,246


17,206

Prepaid expenses and other current assets


4,503


3,736

    Total Current Assets


53,221


65,357

Net property, plant and equipment


15,905


16,462

Right of use assets


11,130


-

Other assets


4,105


5,404

Total Assets


$       84,361


$       87,223






Liabilities and Stockholders' Equity





Short-term borrowings and interest rate swaps


$         4,017


$         9,513

Current portion of long-term operating lease obligations


2,088


-

Current portion of long-term debt and financing lease obligations


19


1,184

Accounts payable


11,661


15,190

Other current liabilities


7,711


6,846

    Total Current Liabilities


25,496


32,733

Long-term portion of operating lease obligations


8,887


-

Other non-current liabilities


7,029


6,787

    Total Liabilities


41,412


39,520

Kewaunee Scientific Corporation equity


42,649


47,100

Noncontrolling interest


300


603

    Total Stockholders' Equity


42,949


47,703

Total Liabilities and Stockholders' Equity


$       84,361


$       87,223

 

Contact:

Donald T. Gardner III


(704) 871-3274

 

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SOURCE Kewaunee Scientific Corporation

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