STATESVILLE, N.C., June 23, 2015 /PRNewswire/ -- Kewaunee Scientific Corporation (NASDAQ: KEQU) today announced results for its year and fourth quarter ended April 30, 2015.
Fiscal Year 2015 Results
Sales for the year were $118,828,000, an increase of 6.9% from sales of $111,166,000 in the prior year. Net earnings for the year were $3,529,000, or $1.33 per diluted share, down from net earnings of $3,895,000, or $1.48 per diluted share, in the prior year. Very competitive pricing in the domestic laboratory furniture marketplace, particularly for large higher education projects in the second half of the year, impacted earnings and profit margins for the year.
Sales from domestic operations for the year were $93,098,000, up 1.5% from sales of $91,750,000 in the prior year. Strong domestic sales in the fourth quarter of the current year offset slightly lower sales for the first nine months of the year. Sales from international operations for the year were $25,730,000, up 32.5% from sales of $19,416,000 in the prior year. International sales for the year benefited from shipments of several large orders received in the prior year.
The order backlog was $90.1 million at April 30, 2015, up from $78.0 million at January 31, 2015 and $89.0 million at April 30, 2014. Record incoming orders in the fourth quarter increased the backlog of domestic orders, which more than offset a decline in the backlog of international orders that resulted from the shipment of several large orders during the year.
Fourth Quarter Results
Sales for the fourth quarter were $30,282,000, up 11.9% from sales of $27,052,000 in the same period of the prior year. Net earnings for the quarter were $609,000, or $0.23 per diluted share, as compared to earnings of $979,000, or $0.37 per diluted share, in the same period of the prior year.
Sales from domestic operations for the quarter were $25,196,000, up 19.6% from sales of $21,072,000 in the same period of prior year. Sales benefited from a strong level of incoming orders. Sales from international operations were $5,086,000, down 14.9% from sales of $5,980,000 in the same period of the prior year, primarily due to the timing of customer required ship dates for orders in the backlog.
Cash on hand at April 30, 2015 was $5,320,000, as compared to $6,616,000 at April 30, 2014, and working capital was $27,707,000, as compared to $27,190,000. Short term debt was $4,752,000 at April 30, 2015, as compared to $2,939,000 at April 30, 2014, and long-term debt was $4,192,000, as compared to $4,613,000. The debt-to-equity ratio at year end was .26-to-1, as compared to .23-to-1 at April 30, 2014.
“Progress was made in a number of important areas in fiscal year 2015,” said David M. Rausch, Kewaunee’s Chief Executive Officer. “Our international business achieved strong sales and earnings, as our international team continued to make excellent progress winning projects, expanding the Kewaunee sales organization, and strengthening the Kewaunee brand name globally. Domestic sales increased slightly over the prior year, while domestic earnings were offset by competitive intensity, as a major competitor exited the marketplace.
“During the year, we successfully introduced to the marketplace a new metal cabinet design incorporating significant enhancements asked for by architects and laboratory planners. We began phasing in the manufacturing of the new cabinet in January 2015, and we expect substantially all of our metal cabinet production will be transitioned to the new design by the end of the second quarter of fiscal year 2016.
“Looking forward, I am optimistic we will continue to experience sales growth in fiscal year 2016. Over time, we expect earnings to improve as the impact of the former competitor leaving the industry is realized. My optimism is based on our strong order backlog, our recent observations that project opportunities continue to improve as the economy in the United States recovers, and expectations that our international business will continue its progress.”
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. Products include steel, wood, and laminate casework, fume hoods, adaptable modular systems, moveable workstations, stand-alone benches, biological safety cabinets, and epoxy resin worksurfaces and sinks.
The Company’s corporate headquarters are located in Statesville, North Carolina. Direct sales offices are located in the United States, India, Singapore, and China. Three manufacturing facilities are located in Statesville serving the domestic and international markets, and one manufacturing facility is located in Bangalore, India serving the local and Asian markets. The Company’s China headquarters, sales office, and assembly operation are located in Suzhou Industrial Park, China. Kewaunee Scientific’s website is located at http://www.kewaunee.com.
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.
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