Kewaunee Scientific Reports Results for Second Quarter of Fiscal Year 2025
Kewaunee Scientific (NASDAQ: KEQU) reported Q2 FY2025 results with sales of $47.76M, down 5.3% YoY. Pre-tax earnings decreased 18.9% to $3.93M, while net earnings increased to $3.01M from $2.73M. The company's order backlog reached a historic high of $184.4M.
Domestic segment sales grew 6.5% to $36.41M, while International segment sales declined 30.1% to $11.36M due to construction delays in India. The company maintained strong liquidity with $29.66M cash on hand and reduced its debt-to-equity ratio to 0.59-to-1.
On November 1, 2024, Kewaunee completed the acquisition of Nu Aire, Inc., a leading manufacturer of biological safety cabinets and airflow products, incurring $2.3M in acquisition-related expenses during the quarter.
Kewaunee Scientific (NASDAQ: KEQU) ha riportato i risultati del secondo trimestre dell'anno fiscale 2025, con vendite di $47,76M, in calo del 5,3% rispetto all'anno precedente. Gli utili prima delle imposte sono diminuiti del 18,9% a $3,93M, mentre gli utili netti sono aumentati a $3,01M rispetto a $2,73M. L'azienda ha raggiunto un backlog ordini storico di $184,4M.
Le vendite del segmento domestico sono cresciute del 6,5% a $36,41M, mentre le vendite del segmento internazionale sono diminuite del 30,1% a $11,36M a causa dei ritardi nella costruzione in India. L'azienda ha mantenuto una solida liquidità con $29,66M di contante a disposizione e ha ridotto il suo rapporto debito/patrimonio a 0,59 a 1.
Il 1 novembre 2024, Kewaunee ha completato l'acquisizione di Nu Aire, Inc., un importante produttore di armadi di sicurezza biologica e prodotti per il flusso d'aria, sostenendo spese di acquisizione relative di $2,3M durante il trimestre.
Kewaunee Scientific (NASDAQ: KEQU) reportó los resultados del segundo trimestre del año fiscal 2025, con ventas de $47.76M, una disminución del 5.3% interanual. Las ganancias antes de impuestos cayeron un 18.9% a $3.93M, mientras que las ganancias netas aumentaron a $3.01M desde $2.73M. La cartera de pedidos de la empresa alcanzó un máximo histórico de $184.4M.
Las ventas del segmento doméstico crecieron un 6.5% a $36.41M, mientras que las ventas del segmento internacional cayeron un 30.1% a $11.36M debido a retrasos en la construcción en India. La empresa mantuvo una fuerte liquidez con $29.66M en efectivo y redujo su relación deuda-capital a 0.59 a 1.
El 1 de noviembre de 2024, Kewaunee completó la adquisición de Nu Aire, Inc., un destacado fabricante de gabinetes de seguridad biológica y productos de flujo de aire, incurriendo en $2.3M en gastos relacionados con la adquisición durante el trimestre.
Kewaunee Scientific (NASDAQ: KEQU)는 2025 회계연도 2분기 실적을 발표하며, 매출은 4,776만 달러로 전년 동기 대비 5.3% 감소했습니다. 세전 수익은 18.9% 감소하여 393만 달러였으며, 순이익은 273만 달러에서 301만 달러로 증가했습니다. 회사의 수주 잔고는 역사적인 최고치인 1억 8,440만 달러에 도달했습니다.
국내 부문의 매출은 6.5% 증가하여 3,641만 달러에 달했으며, 국제 부문의 매출은 인도의 건설 지연으로 인해 30.1% 감소하여 1,136만 달러에 그쳤습니다. 회사는 2,966만 달러의 현금을 보유하며 강력한 유동성을 유지하였고, 부채 대 자본 비율을 0.59 대 1로 낮추었습니다.
2024년 11월 1일, Kewaunee는 생물학적 안전 캐비닛 및 공기 흐름 제품의 주요 제조업체인 Nu Aire, Inc.를 인수하며 분기 동안 230만 달러의 인수 관련 비용이 발생했습니다.
Kewaunee Scientific (NASDAQ: KEQU) a annoncé ses résultats du deuxième trimestre de l'exercice 2025, avec des ventes de 47,76 millions de dollars, en baisse de 5,3 % par rapport à l'année précédente. Les bénéfices avant impôts ont diminué de 18,9 % à 3,93 millions de dollars, tandis que les bénéfices nets ont augmenté à 3,01 millions de dollars contre 2,73 millions de dollars. Le carnet de commandes de l'entreprise a atteint un niveau record de 184,4 millions de dollars.
Les ventes du segment domestique ont augmenté de 6,5 % pour atteindre 36,41 millions de dollars, tandis que les ventes du segment international ont chuté de 30,1 % à 11,36 millions de dollars en raison de retards de construction en Inde. L'entreprise a maintenu une forte liquidité avec 29,66 millions de dollars de liquidités et a réduit son ratio d'endettement à 0,59 pour 1.
Le 1er novembre 2024, Kewaunee a finalisé l'acquisition de Nu Aire, Inc., un fabricant de premier plan de cabines de sécurité biologiques et de produits de flux d'air, en supportant des frais d'acquisition de 2,3 millions de dollars durant le trimestre.
Kewaunee Scientific (NASDAQ: KEQU) berichtete über die Ergebnisse des 2. Quartals des Geschäftsjahres 2025 mit einem Umsatz von 47,76 Millionen US-Dollar, was einem Rückgang von 5,3% im Vergleich zum Vorjahr entspricht. Die Erträge vor Steuern sanken um 18,9% auf 3,93 Millionen US-Dollar, während der Nettogewinn auf 3,01 Millionen US-Dollar von 2,73 Millionen US-Dollar anstieg. Der Auftragsbestand des Unternehmens erreichte mit 184,4 Millionen US-Dollar einen historischen Höchststand.
Der Umsatz im Inlandssegment stieg um 6,5% auf 36,41 Millionen US-Dollar, während der Umsatz im internationalen Segment aufgrund von Bauverzögerungen in Indien um 30,1% auf 11,36 Millionen US-Dollar zurückging. Das Unternehmen wies eine starke Liquidität mit 29,66 Millionen US-Dollar in bar aus und verringerte sein Verhältnis von Schulden zu Eigenkapital auf 0,59 zu 1.
Am 1. November 2024 schloss Kewaunee die Übernahme von Nu Aire, Inc. ab, einem führenden Hersteller von biologischen Sicherheitsschränken und Luftstromprodukten, wobei im Quartal 2,3 Millionen US-Dollar an Übernahmekosten anfielen.
- Record-high order backlog of $184.4M, up from $146.3M YoY
- Domestic segment sales increased 6.5% YoY to $36.41M
- Cash position strengthened to $29.66M from $25.94M in April 2024
- Reduced short-term debt to $805K from $3.1M in April 2024
- Strategic acquisition of Nu Aire expands product portfolio and market reach
- Overall sales decreased 5.3% YoY to $47.76M
- Pre-tax earnings declined 18.9% YoY to $3.93M
- International segment sales dropped 30.1% YoY due to India construction delays
- Corporate segment losses increased to $2.44M from $1.24M YoY
- Incurred $2.3M in acquisition-related expenses
Insights
The Q2 FY2025 results present a mixed picture. While overall sales declined by
The Nu Aire acquisition is strategically significant, expanding Kewaunee's product portfolio in containment solutions. However,
The record backlog of
Fiscal Year 2025 Second Quarter Results:
Sales during the second quarter of fiscal year 2025 were
The Company's order backlog was at a historically high level of
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 October 31, 2024 was
The Company had short-term debt of
"Our financial performance for the second quarter of fiscal year 2025 was strong," said Thomas D. Hull III, Kewaunee's President and Chief Executive Officer. "Domestic segment operating performance improved compared to last year's second quarter as a result of higher product demand, highlighting our continued health and advantage in the market. As discussed during the first quarter of fiscal year 2025, customer construction site delays in
"Looking ahead, our backlog remains very healthy, demonstrating the continued vitality and investment in the markets in which Kewaunee participates and the success both Kewaunee and our channel partners continue to achieve in the marketplace. The strength of Kewaunee's backlog positions the company well to deliver another strong year for our fiscal year."
"Additionally, on November 1, 2024, Kewaunee announced the acquisition of Nu Aire, Inc.," Hull continued. "Nu Aire is renowned for its manufacturing of robust containment solutions, such as biological safety cabinets, airflow products, and more, which serve a diverse range of industries. While not reflected in our second quarter fiscal year 2025 results, Nu Aire will be included going forward, beginning with our third quarter fiscal year 2025 results. It is worth noting the company incurred expenses related to the acquisition of
"The acquisition of Nu Aire presents a unique opportunity for Kewaunee to expand its capabilities, allowing the combined organization to better meet the diverse needs of end-users in laboratory furnishings and, through Nu Aire's established distribution partners, reach regions where Kewaunee has not previously had a presence. This move accelerates the Company's vision of becoming the market leader in the design and manufacturing of laboratory furniture and technical products essential for outfitting the laboratories of tomorrow."
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. |
EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted Segment EBITDA Reconciliation (Unaudited) ($ in thousands) | ||||||||
Quarter Ended October 31, 2023 | Domestic | International | Corporate | Consolidated | ||||
Net Earnings (Loss) | $ 3,054 | $ 525 | $ (847) | $ 2,732 | ||||
Add/(Less): | ||||||||
Interest Expense | 323 | 35 | 14 | 372 | ||||
Interest Income | — | (205) | (22) | (227) | ||||
Income Taxes | 1,232 | 1,179 | (396) | 2,015 | ||||
Depreciation and Amortization | 621 | 101 | 48 | 770 | ||||
EBITDA | $ 5,230 | $ 1,635 | $ (1,203) | $ 5,662 | ||||
Quarter Ended October 31, 2024 | Domestic | International | Corporate | Consolidated | ||||
Net Earnings (Loss) | $ 4,524 | $ 356 | $ (1,872) | $ 3,008 | ||||
Add/(Less): | ||||||||
Interest Expense | 413 | 19 | 10 | 442 | ||||
Interest Income | — | (133) | (156) | (289) | ||||
Income Taxes | 1,241 | 247 | (572) | 916 | ||||
Depreciation and Amortization | 660 | 103 | 43 | 806 | ||||
EBITDA | $ 6,838 | $ 592 | $ (2,547) | $ 4,883 | ||||
Professional & Other Fees | — | — | 1,5402 | 1,540 | ||||
Adjusted EBITDA | $ 6,838 | $ 592 | $ (1,007) | $ 6,423 | ||||
Year to Date October 31, 2023 | Domestic | International | Corporate | Consolidated | ||||
Net Earnings (Loss) | $ 5,765 | $ 994 | $ (1,553) | $ 5,206 | ||||
Add/(Less): | ||||||||
Interest Expense | 703 | 71 | 28 | 802 | ||||
Interest Income | — | (418) | (23) | (441) | ||||
Income Taxes | 2,145 | 1,461 | (694) | 2,912 | ||||
Depreciation and Amortization | 1,195 | 197 | 96 | 1,488 | ||||
EBITDA | $ 9,808 | $ 2,305 | $ (2,146) | $ 9,967 | ||||
Year to Date October 31, 2024 | Domestic | International | Corporate | Consolidated | ||||
Net Earnings (Loss) | $ 7,395 | $ 819 | $ (3,013) | $ 5,201 | ||||
Add/(Less): | ||||||||
Interest Expense | 854 | 40 | 20 | 914 | ||||
Interest Income | — | (307) | (329) | (636) | ||||
Income Taxes | 2,005 | 526 | (1,423) | 1,108 | ||||
Depreciation and Amortization | 1,322 | 210 | 89 | 1,621 | ||||
EBITDA | $ 11,576 | $ 1,288 | $ (4,656) | $ 8,208 | ||||
Professional & Other Fees | — | — | 2,2703 | 2,270 | ||||
Adjusted EBITDA | $ 11,576 | $ 1,288 | $ (2,386) | $ 10,478 | ||||
______________________________ |
2 Professional and other fees incurred during the three months ended October 31, 2024 related to the Company's acquisition of Nu Aire, Inc. ("Nu Aire"), which closed on November 1, 2024 |
3 Professional and other fees incurred during the six months ended October 31, 2024 related to the Company's acquisition of Nu Aire |
Adjusted Consolidated Statement of Operations Reconciliation (Unaudited) ($ in thousands, except per share amounts) | |||||||
Three Months Ended October 31, | |||||||
As Reported | Professional | Adjusted | 2023 | ||||
Net sales | $ 47,764 | $ — | $ 47,764 | $ 50,436 | |||
Cost of products sold | 33,812 | — | 33,812 | 36,968 | |||
Gross profit | 13,952 | — | 13,952 | 13,468 | |||
Operating expenses | 9,518 | 1,2164 | 8,302 | 8,359 | |||
Operating profit | 4,434 | 1,216 | 5,650 | 5,109 | |||
Pension expense | — | — | — | (40) | |||
Other (expense) income, net | (61) | 3245 | 263 | 148 | |||
Interest expense | (442) | — | (442) | (372) | |||
Profit before income taxes | 3,931 | 1,540 | 5,471 | 4,845 | |||
Income tax expense | 916 | 3516 | 1,267 | 2,015 | |||
Net earnings | 3,015 | 1,189 | 4,204 | 2,830 | |||
Less: Net earnings attributable to the non-controlling interest | 7 | — | 7 | 98 | |||
Net earnings attributable to Kewaunee Scientific Corporation | $ 3,008 | $ 1,189 | $ 4,197 | $ 2,732 | |||
Net earnings per share attributable to Kewaunee Scientific Corporation stockholders | |||||||
Basic | $ 1.05 | $ 0.41 | $ 1.46 | $ 0.94 | |||
Diluted | $ 1.01 | $ 0.40 | $ 1.41 | $ 0.93 | |||
Six Months Ended October 31, | |||||||
As Reported | Professional & | Adjusted | 2023 | ||||
Net sales | $ 96,157 | $ — | $ 96,157 | $ 100,275 | |||
Cost of products sold | 69,717 | — | 69,717 | 74,893 | |||
Gross profit | 26,440 | — | 26,440 | 25,382 | |||
Operating expenses | 19,431 | 1,9467 | 17,485 | 16,465 | |||
Operating profit | 7,009 | 1,946 | 8,955 | 8,917 | |||
Pension expense | — | — | — | (81) | |||
Other income, net | 266 | 3248 | 590 | 223 | |||
Interest expense | (914) | — | (914) | (802) | |||
Profit before income taxes | 6,361 | 2,270 | 8,631 | 8,257 | |||
Income tax expense | 1,108 | 5189 | 1,626 | 2,912 | |||
Net earnings | 5,253 | 1,752 | 7,005 | 5,345 | |||
Less: Net earnings attributable to the non-controlling interest | 52 | — | 52 | 139 | |||
Net earnings attributable to Kewaunee Scientific Corporation | $ 5,201 | $ 1,752 | $ 6,953 | $ 5,206 | |||
Net earnings per share attributable to Kewaunee Scientific Corporation stockholders | |||||||
Basic | $ 1.82 | $ 0.61 | $ 2.43 | $ 1.81 | |||
Diluted | $ 1.75 | $ 0.59 | $ 2.34 | $ 1.79 | |||
______________________________ |
4 Professional fees incurred during the three months ended October 31, 2024 related to the Company's acquisition of Nu Aire |
5 Cost incurred related to the early termination of the Company's Revolving Credit Facility |
6 Estimated tax impact of professional and other fees incurred during the three months ended October 31, 2024 related to the Company's acquisition of Nu Aire |
7 Professional fees incurred during the six months ended October 31, 2024 related to the Company's acquisition of Nu Aire |
8 Cost incurred related to the early termination of the Company's Revolving Credit Facility |
9 Estimated tax impact of professional and other fees incurred during the six months ended October 31, 2024 related to the Company's acquisition of Nu Aire |
About Non-GAAP Measures
The Company includes non-GAAP financial measures such as adjusted net earnings and adjusted net earnings per share, in the information provided with this press release as supplemental information relating to its operating results. Adjusted net earnings represents GAAP net earnings adjusted for professional and other fees related to the acquisition of Nu Aire, Inc. and the corresponding tax impact. This financial information is not in accordance with, or an alternative for, GAAP-compliant financial information and may be different from the operating or non-GAAP financial information used by other companies. The Company believes that this presentation of adjusted net earnings and adjusted net earnings per share provides useful information to investors regarding certain additional financial and business trends relating to its financial condition and results of operations.
EBITDA and Segment EBITDA are calculated as net earnings (loss), less interest expense and interest income, income taxes, depreciation, and amortization. Adjusted EBITDA and Adjusted Segment EBITDA are calculated as EBITDA or Segment EBITDA less the impact of the professional and other fees related to the Company's acquisition of Nu Aire, Inc., as discussed in more detail above. We believe EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted Segment EBITDA allow management and investors to compare our performance to other companies on a consistent basis without regard to depreciation and amortization or the professional fees not related to our core business incurred during the current period, which can vary significantly between companies depending upon many factors. EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted Segment EBITDA are not calculations based upon generally accepted accounting principles, and the method for calculating EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted Segment EBITDA can vary among companies. The amounts included in the EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted Segment EBITDA calculations, however, are derived from amounts included in the historical consolidated statements of operations. EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted 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 Nu Aire
Founded in 1971 and based in
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: our ability to realize the benefits anticipated as a result of the Nu Aire acquisition; 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, 2024, 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.
Kewaunee Scientific Corporation Condensed Consolidated Statements of Operations (Unaudited) ($ and shares in thousands, except per share amounts)
| |||||||
Three Months Ended October 31, | Six Months Ended October 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Net sales | $ 47,764 | $ 50,436 | $ 96,157 | $ 100,275 | |||
Cost of products sold | 33,812 | 36,968 | 69,717 | 74,893 | |||
Gross profit | 13,952 | 13,468 | 26,440 | 25,382 | |||
Operating expenses | 9,518 | 8,359 | 19,431 | 16,465 | |||
Operating profit | 4,434 | 5,109 | 7,009 | 8,917 | |||
Pension expense | — | (40) | — | (81) | |||
Other (expense) income, net | (61) | 148 | 266 | 223 | |||
Interest expense | (442) | (372) | (914) | (802) | |||
Profit before income taxes | 3,931 | 4,845 | 6,361 | 8,257 | |||
Income tax expense | 916 | 2,015 | 1,108 | 2,912 | |||
Net earnings | 3,015 | 2,830 | 5,253 | 5,345 | |||
Less: Net earnings attributable to the non-controlling interest | 7 | 98 | 52 | 139 | |||
Net earnings attributable to Kewaunee Scientific Corporation | $ 3,008 | $ 2,732 | $ 5,201 | $ 5,206 | |||
Net earnings per share attributable to Kewaunee Scientific Corporation stockholders | |||||||
Basic | $ 1.05 | $ 0.94 | $ 1.82 | $ 1.81 | |||
Diluted | $ 1.01 | $ 0.93 | $ 1.75 | $ 1.79 | |||
Weighted average number of common shares outstanding | |||||||
Basic | 2,872 | 2,903 | 2,861 | 2,882 | |||
Diluted | 2,974 | 2,931 | 2,971 | 2,908 | |||
Kewaunee Scientific Corporation Condensed Consolidated Balance Sheets ($ in thousands)
| |||
October 31, | April 30, 2024 | ||
(Unaudited) | |||
Assets | |||
Cash and cash equivalents | $ 25,963 | $ 23,267 | |
Restricted cash | 3,701 | 2,671 | |
Receivables, less allowances | 41,885 | 45,064 | |
Inventories | 18,659 | 20,679 | |
Prepaid expenses and other current assets | 6,228 | 5,136 | |
Total Current Assets | 96,436 | 96,817 | |
Net Property, Plant and Equipment | 16,990 | 17,649 | |
Right of use assets | 6,941 | 7,454 | |
Deferred income taxes | 8,305 | 7,401 | |
Other assets | 5,806 | 5,445 | |
Total Assets | $ 134,478 | $ 134,766 | |
Liabilities and Stockholders' Equity | |||
Short-term borrowings | $ 805 | $ 3,099 | |
Current portion of lease obligations | 2,221 | 2,234 | |
Current portion of financing liability | 750 | 713 | |
Accounts payable | 21,458 | 23,262 | |
Other current liabilities | 11,237 | 11,472 | |
Total Current Liabilities | 36,471 | 40,780 | |
Long-term portion of lease obligations | 5,191 | 5,669 | |
Long-term portion of financing liability | 27,032 | 27,420 | |
Other non-current liabilities | 5,127 | 4,688 | |
Total Liabilities | 73,821 | 78,557 | |
Kewaunee Scientific Corporation Equity | 59,328 | 54,760 | |
Non-controlling interest | 1,329 | 1,449 | |
Total Stockholders' Equity | 60,657 | 56,209 | |
Total Liabilities and Stockholders' Equity | $ 134,478 | $ 134,766 | |
Contact: | Donald T. Gardner III |
704/871-3274 |
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SOURCE Kewaunee Scientific Corporation
FAQ
What were Kewaunee Scientific's (KEQU) Q2 2025 earnings per share?
How much was KEQU's order backlog as of October 31, 2024?
What caused the decline in KEQU's international segment sales in Q2 2025?
When did Kewaunee Scientific acquire Nu Aire and what does it mean for the company?
What was KEQU's cash position as of October 31, 2024?
