Kewaunee Scientific Reports Results for First Quarter of Fiscal Year 2024
- Improved pre-tax and net earnings
- Increased international sales
- Decreased sales and order backlog
Fiscal Year 2024 First Quarter Results:
Sales during the first quarter of fiscal year 2024 were
The Company's order backlog was
Domestic Segment - Domestic sales for the quarter were
International Segment - International sales for the quarter were
Corporate Segment – Corporate segment pre-tax net loss was
Total cash on hand on July 31, 2023 was
"Fiscal year 2024 commenced with an outstanding financial performance for Kewaunee," said Thomas D. Hull III, Kewaunee's President and Chief Executive Officer. "This performance was driven by the investments that we have been making in the Company's domestic operations in continuous improvement, 5-S and cost containment programs, coupled with the capital refreshment program executed over the past year. These capabilities, along with solid customer demand, resulted in a very strong operating performance during the quarter."
"Kewaunee's international business remains strong as the team remains focused on delivering a number of large, multi-year projects that were previously awarded."
"We are operating more efficiently based on our ability to focus solely on supporting our dealer and distribution partners domestically while continuing to provide turnkey solutions in the international markets. Looking forward, this improved focus, combined with a strong global management team, a healthy order backlog, improved manufacturing capabilities, and markets that continue to prioritize investment in projects requiring products Kewaunee designs and manufactures positions the Company well."
EBITDA and Segment EBITDA Reconciliation
Quarter Ended July 31, 2022 | Domestic | International | Corporate | Consolidated | ||||
Net Earnings (Loss) | $ 98 | $ 687 | $ (1,532) | $ (747) | ||||
Add/(Less): | ||||||||
Interest Expense | — | 31 | 353 | 384 | ||||
Interest Income | — | (110) | (356) | (466) | ||||
Income Taxes | — | 379 | — | 379 | ||||
Depreciation and Amortization | 613 | 64 | 48 | 725 | ||||
EBITDA | $ 711 | $ 1,051 | $ (1,487) | $ 275 | ||||
Quarter Ended July 31, 2023 | Domestic | International | Corporate | Consolidated | ||||
Net Earnings (Loss) | $ 2,711 | $ 469 | $ (706) | $ 2,474 | ||||
Add/(Less): | ||||||||
Interest Expense | 380 | 36 | 14 | 430 | ||||
Interest Income | — | (213) | (1) | (214) | ||||
Income Taxes | 913 | 282 | (298) | 897 | ||||
Depreciation and Amortization | 574 | 96 | 48 | 718 | ||||
EBITDA | $ 4,578 | $ 670 | $ (943) | $ 4,305 |
About Non-GAAP Measures
EBITDA and Segment EBITDA are calculated as net earnings (loss), less interest expense and interest income, income taxes, depreciation, and amortization. We believe EBITDA and Segment EBITDA allow management and investors to compare our performance to other companies on a consistent basis without regard to depreciation and amortization, which can vary significantly between companies depending upon many factors. EBITDA and Segment EBITDA are not calculations based upon generally accepted accounting principles, and the method for calculating EBITDA and Segment EBITDA can vary among companies. The amounts included in the EBITDA and Segment EBITDA calculations, however, are derived from amounts included in the historical consolidated statements of operations. EBITDA and Segment EBITDA should not be considered as alternatives to net earnings (loss) or operating earnings (loss) as an indicator of the Company's operating performance, or as an alternative to operating cash flows as a measure of liquidity.
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 and wood casework, fume hoods, adaptable modular systems, moveable workstations, stand-alone benches, biological safety cabinets, and epoxy resin work surfaces and sinks.
The Company's corporate headquarters are located in
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. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions, and other important factors that could significantly impact results or achievements expressed or implied by such forward-looking statements. Such factors, risks, uncertainties and assumptions include, but are not limited to: competitive and general economic conditions, including disruptions from government mandates, both domestically and internationally, as well as supplier constraints and other supply disruptions; changes in customer demands; technological changes in our operations or in our industry; dependence on customers' required delivery schedules; risks related to fluctuations in the Company's operating results from quarter to quarter; risks related to international operations, including foreign currency fluctuations; changes in the legal and regulatory environment; changes in raw materials and commodity costs; acts of terrorism, war, governmental action, and natural disasters and other Force Majeure events. The cautionary statements made pursuant to the Reform Act herein and elsewhere by us should not be construed as exhaustive. We cannot always predict what factors would cause actual results to differ materially from those indicated by the forward-looking statements. Over time, our actual results, performance, or achievements will likely differ from the anticipated results, performance or achievements that are expressed or implied by our forward-looking statements, and such difference might be significant and harmful to our stockholders' interest. Many important factors that could cause such a difference are described under the caption "Risk Factors," in Item 1A of our Annual Report on Form 10-K for the fiscal year ended April 30, 2023, which you should review carefully, and in our subsequent quarterly reports on Form 10-Q and current reports on Form 8-K. These reports are available on our investor relations website at www.kewaunee.com and on the SEC website at www.sec.gov. 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.
1 EBITDA is a non-GAAP financial measure. See the table below for a reconciliation of EBITDA and segment EBITDA to net earnings (loss), the most directly comparable GAAP measure. | |||||
Kewaunee Scientific Corporation | ||||
Condensed Consolidated Statements of Operations (Unaudited) | ||||
($ and shares in thousands, except per share amounts) | ||||
Three months ended | ||||
July 31, | ||||
2023 | 2022 | |||
Net sales | $ 49,839 | $ 50,123 | ||
Cost of products sold | 37,925 | 43,927 | ||
Gross profit | 11,914 | 6,196 | ||
Operating expenses | 8,106 | 6,592 | ||
Operating profit (loss) | 3,808 | (396) | ||
Pension expense | (41) | (27) | ||
Other income, net | 75 | 467 | ||
Interest expense | (430) | (384) | ||
Profit (loss) before income taxes | 3,412 | (340) | ||
Income tax expense | 897 | 379 | ||
Net earnings (loss) | 2,515 | (719) | ||
Less: net earnings attributable to the noncontrolling interest | 41 | 28 | ||
Net earnings (loss) attributable to Kewaunee Scientific Corporation | $ 2,474 | $ (747) | ||
Net earnings (loss) per share attributable to | ||||
Kewaunee Scientific Corporation stockholders | ||||
Basic | ( | |||
Diluted | ( | |||
Weighted average number of common shares outstanding | ||||
Basic | 2,860 | 2,807 | ||
Diluted | 2,885 | 2,807 | ||
Kewaunee Scientific Corporation | ||||
Condensed Consolidated Balance Sheets | ||||
($ in thousands) | ||||
July 31, | April 30, | |||
2023 | 2023 | |||
Assets | (Unaudited) | |||
Cash and cash equivalents | $ 12,699 | $ 8,078 | ||
Restricted cash | 8,869 | 5,737 | ||
Receivables, less allowances | 42,461 | 46,081 | ||
Inventories | 22,126 | 21,889 | ||
Prepaid expenses and other current assets | 7,365 | 6,135 | ||
Total Current Assets | 93,520 | 87,920 | ||
Net property, plant and equipment | 17,339 | 16,402 | ||
Right of use assets | 8,612 | 9,170 | ||
Other assets | 5,347 | 5,406 | ||
Total Assets | $ 124,818 | $ 118,898 | ||
Liabilities and Stockholders' Equity | ||||
Short-term borrowings | $ 5,054 | $ 3,587 | ||
Current portion of lease obligations | 1,998 | 2,052 | ||
Current portion of financing liability | 659 | 642 | ||
Accounts payable | 22,140 | 23,599 | ||
Other current liabilities | 14,378 | 10,173 | ||
Total Current Liabilities | 44,229 | 40,053 | ||
Long-term portion of lease obligations | 6,788 | 7,284 | ||
Long-term portion of financing liability | 27,958 | 28,132 | ||
Other non-current liabilities | 5,303 | 4,944 | ||
Total Liabilities | 84,278 | 80,413 | ||
Kewaunee Scientific Corporation equity | 39,430 | 37,409 | ||
Noncontrolling interest | 1,110 | 1,076 | ||
Total Stockholders' Equity | 40,540 | 38,485 | ||
Total Liabilities and Stockholders' Equity | $ 124,818 | $ 118,898 | ||
Contact: | Donald T. Gardner III |
704/871-3274 |
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SOURCE Kewaunee Scientific Corporation
