Kewaunee Scientific Corporation Reports Results For Third Quarter
STATESVILLE, N.C., March 1, 2016 /PRNewswire/ -- Kewaunee Scientific Corporation (Nasdaq: KEQU) today reported results for its third quarter ended January 31, 2016.
Sales for the quarter were $32,410,000, a 17% increase from sales of $27,754,000 in the prior year. Domestic sales for the quarter were $25,423,000, up 27% from sales of $20,025,000 in the third quarter of last year. International sales for the quarter were $6,987,000, down 10% from sales of $7,729,000 in the third quarter last year.
Net earnings for the quarter were $830,000, or $0.31 per diluted share, as compared to net earnings of $484,000, or $0.18 per diluted share, in the third quarter last year. Sales and earnings for the quarter were higher in comparison to the prior year period as the opportunities within the domestic market were stronger than is typical for our third quarter. International sales were down on a year-over-year basis due to the timing of a large order shipped during the third quarter of last year that did not repeat.
The Company's order backlog was $95.2 million at January 31, 2016 as compared to $78.0 million at January 31, 2015, and $92.4 million at October 31, 2015. Incoming orders for the Domestic business were strong during the quarter due to increased opportunities for laboratory furniture and scientific equipment; however, sales of education related products remained soft as many state and local governments continue to struggle financially. The International backlog also strengthened as the International team secured a number of new orders across all of our key International markets.
The Company's balance sheet and financial condition remain strong. Unrestricted cash on hand was $3,709,000 at the end of the quarter, as compared to $3,863,000 at the end of the third quarter last year. Working capital was $29,541,000 as compared to $27,352,000 at the end of the third quarter last year. Short-term debt and interest rate swaps were $5,538,000 at the end of the quarter, as compared to $1,036,000 at the end of the third quarter last year, and long-term debt was $3,455,000 as compared to $3,876,000.
"Historically, the third quarter is often Kewaunee's weakest; however, during the third quarter of fiscal year 2016, we were able to deliver strong year-over-year top line and earnings performance, improved margins, and continued growth of our backlog," said David M. Rausch, Kewaunee's President and Chief Executive Officer. "We are seeing continued strength from the laboratory furniture and casework marketplace as our customers continue to both invest in new facilities and upgrade existing facilities."
"Looking forward, we are focused on exceeding our customers' expectations as we continue to respond to market opportunities globally. We expect both the domestic and international laboratory casework marketplace will continue to be strong with improved demand for both new construction and renovation projects.
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