STATESVILLE, N.C., Dec. 6, 2016 /PRNewswire/ -- Kewaunee Scientific Corporation (Nasdaq: KEQU) today reported results for its second quarter of fiscal 2017, ended October 31, 2016.
Net earnings for the quarter increased 114% to $1,486,000, or $0.54 per diluted share, as compared to net earnings of $695,000, or $0.26 per diluted share, in the second quarter last year.
Sales for the quarter were $36,329,000, a 17.1% increase from sales of $31,037,000 in the prior year. Domestic sales for the quarter were $28,211,000, up 7.4% from sales of $26,279,000 in the second quarter of last year. International sales for the quarter were $8,118,000, up 70.6% from sales of $4,758,000 in the second quarter last year.
The growth in Domestic sales was a result of continued strength of incoming orders across our distribution channels as the marketplace for laboratory furniture and scientific equipment in the United States continued to improve. International sales were strong as we finished deliveries on multi-year laboratory projects in India and Kuwait.
The Company also announced during the quarter that it was awarded a second large multi-year laboratory project for Kuwait University Sabah Al-Salem University City at the College of Science, valued at $18.5M.
The Company’s order backlog was $101.1 million at October 31, 2016, as compared to $92.4 million at October 31, 2015, and $86.2 million at July 31, 2016. This level of order backlog is a new record for Kewaunee.
The Company’s balance sheet and financial condition remain strong. Unrestricted cash on hand was $7.6 million at the end of the quarter, as compared to $3.3 million at the end of the second quarter last year. Working capital was $31.4 million, as compared to $29.0 million at the end of the second quarter last year. Short-term debt and interest rate swaps were $6.7 million at the end of the quarter, as compared to $5.5 million at the end of the second quarter last year, and total bank borrowings and interest rate swaps were $10.3 million, as compared to $9.5 million at the end of the second quarter last year.
“I am very happy with our results this quarter as we continue to compete for and win significant orders globally, demonstrating the strength and market leadership of Kewaunee,” said David M. Rausch, Kewaunee’s President and Chief Executive Officer. “I am extremely pleased that Kewaunee has been awarded a second large order in Kuwait on which we will begin design and engineering during the second half of the current fiscal year, followed promptly by the production phase of the project.
“Looking forward, our third quarter is always our most challenging due to the holidays as well as customers managing their year-end inventory; however, I am optimistic that the results for the current fiscal year will be strong as we continue to see new opportunities worldwide.”
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