BioSpace.com

Biotech and Pharmaceutical
News & Jobs
Search the Site
 
   
Biotechnology and Pharmaceutical Channel Medical Device and Diagnostics Channel Clinical Research Channel BioSpace Collaborative    Job Seekers:  Register | Login          Employers:  Register | Login  

NEWSLETTERS
Free Newsletters
Archive
My Subscriptions

NEWS
News by Subject
News by Disease
News by Date
PLoS
Search News
Post Your News
JoVE

CAREER NETWORK
Job Seeker Login
Most Recent Jobs
Browse Biotech Jobs
Search Jobs
Post Resume
Career Fairs
Career Resources
For Employers

HOTBEDS
Regional News
US & Canada
  Biotech Bay
  Biotech Beach
  Genetown
  Pharm Country
  BioCapital
  BioMidwest
  Bio NC
  BioForest
  Southern Pharm
  BioCanada East
  US Device
Europe
Asia

DIVERSITY

INVESTOR
Market Summary
News
IPOs

PROFILES
Company Profiles

START UPS
Companies
Events

INTELLIGENCE
Research Store

INDUSTRY EVENTS
Biotech Events
Post an Event
RESOURCES
Real Estate
Business Opportunities

 News | News By Subject | News by Disease News By Date | Search News
eNewsletter Signup
Miles
Km80.5

   

Kewaunee Scientific Corporation Announces Results for Second Quarter


12/3/2010 7:18:58 AM

STATESVILLE, N.C., Dec. 2, 2010 /PRNewswire-FirstCall/ -- Kewaunee Scientific Corporation (Nasdaq: KEQU) today announced the financial results for its second quarter ended October 31, 2010.

Sales for the quarter were $25,625,000, the third consecutive quarter of sales improvement over the immediately preceding quarter. As compared to the same quarter last year, sales declined 5% from sales of $27,088,000, reflecting a continuing softness in the domestic marketplace for small and mid-sized laboratory projects. Domestic sales were $22,269,000, down from $24,713,000 in the second quarter last year, while international sales were $3,356,000, up from $2,375,000 in the second quarter last year.

Net earnings for the quarter were $855,000, or $0.33 per diluted share, a decrease from net earnings of $1,352,000, or $0.53 per diluted share, in the second quarter of the prior year. Earnings were unfavorably impacted by lower sales volume and continued aggressive pricing in all of the Company's markets.

The order backlog was $66.0 million at October 31, 2010, down slightly from $66.9 million at July 31, 2010 and up from $65.2 million at October 31, 2009.

The domestic marketplace for laboratory furniture remains healthy, particularly for larger laboratory furniture projects. In addition, the Company noticed an improvement in small and mid-sized orders toward the end of the quarter. This was the first noticeable improvement in this business category since the beginning of the economic slowdown.

Sales for the six months ended October 31, 2010 were $50,483,000, down 5% from sales of $53,337,000, in the same period last year. Domestic operations sales were $43,216,000, down from sales of $48,071,000 in the same period last year. International operations sales were $7,267,000, up from sales of $5,266,000 in the same period last year. Net earnings for the six months were $1,512,000, or $0.59 per diluted share, down from net earnings of $2,423,000, or $0.95 per diluted share, for the same period last year.

"Progress was made during the quarter in a number of strategic areas," said William A. Shumaker, President and Chief Executive Officer. "The expansion of our Statesville epoxy resin facility was completed on schedule and within budget. We are now offering additional colors and new countertop styles in response to customer preferences. Our recent strategy to manufacture casework and architectural millwork furniture for the growing healthcare market continued to move forward, and we have received our first large order for these products. We are particularly pleased with the early success of our new biological safety cabinets. They have been extremely well received in the marketplace, and we have started shipping these products to customers.

"Regarding the marketplace, we continue to see many opportunities, and we have a record number of outstanding quotations on large laboratory projects, both domestic and international. Decisions on most of these projects are expected over the next six months, and I am optimistic the Company will be successful in winning a significant number of them.

"Looking forward to the second half of the year, we expect our progress to continue, with sales and earnings projected to improve over the first half of this year. These expectations are based on a number of factors, including scheduled delivery dates for orders in our order backlog, a modest recovery in the global economy, sales and earnings benefits from new products, and continuing increased sales opportunities in the international marketplace."

The Company's balance sheet remains strong. Working capital was $21,781,000 at October 31, 2010, up from $20,880,000 at October 31, 2009. Short term borrowings under the bank line of credit were $4,147,000 at October 31, 2010, down from $5,370,000 at October 31, 2009. Total bank borrowings and capital lease obligations were $8,273,000, as compared to $5,647,000 at October 31, 2009, and the debt-to-equity ratio was .26-to-1, as compared to .19-to-1 at October 31, 2009. Cash on hand at October 31, 2010 was $1,792,000, down from $3,057,000 at October 31, 2009.

Kewaunee Scientific Corporation is a recognized leader in the design, manufacture, and installation of scientific and technical furniture. The Company's corporate headquarters are located in Statesville, North Carolina. The Company's manufacturing facilities are located in Statesville and Bangalore, India. The Company has subsidiaries in Singapore and Bangalore that serve the Asian and Middle East markets. Kewaunee Scientific's website is located at http://www.kewaunee.com.

Certain statements in this release constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could significantly impact results or achievements expressed or implied by such forward-looking statements. These factors include, but are not limited to, economic, competitive, governmental, and technological factors affecting the Company's operations, markets, products, services, and prices.

Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)


Three Months Ended

Six Months Ended


October 31

October 31


2010

2009

2010

2009






Net sales

$25,625

$27,088

$50,483

$53,337

Cost of products sold

20,208

20,878

40,067

41,363

Gross profit

5,417

6,210

10,416

11,974

Operating expenses

4,045

3,976

7,946

7,942

Operating earnings

1,372

2,234

2,470

4,032

Other expense

--

--

(1)

--

Interest expense

(78)

(39)

(122)

(80)






Earnings before income taxes

1,294

2,195

2,347

3,952

Income tax expense

414

751

743

1,340






Net earnings

880

1,444

1,604

2,612






Less: net earnings attributable to





the noncontrolling interest

25

92

92

189






Net earnings attributable to





Kewaunee Scientific Corporation

$855

$1,352

$1,512

$2,423






Net earnings per share attributable to





Kewaunee Scientific Corporation stockholders





Basic

$0.33

$0.53

$0.59

$0.95

Diluted

$0.33

$0.53

$0.59

$0.95






Weighted average number of common





shares outstanding (in thousands)





Basic

2,573

2,560

2,573

2,558

Diluted

2,578

2,571

2,578

2,564



Condensed Consolidated Balance Sheets
(in thousands)


October 31

April 30


2010

2010


(unaudited)


Assets



Cash and cash equivalents

$1,248

$1,722

Restricted cash

544

544

Receivables, less allowances

26,993

26,169

Inventories

9,058

8,350



Read at BioSpace.com

   

ADD TO DEL.ICIO.US    ADD TO DIGG    ADD TO FURL    ADD TO STUMBLEUPON    ADD TO TECHNORATI FAVORITES