STATESVILLE, NC-- Architectural woodwork and lab furnishings firm Kewaunee Scientific  (Nasdaq: KEQU) first quarter sales rose 2 percent to $31.1 million, with domestic sales flat at $24.3 million, and international sales up 8 percent at $6.8 million. 

But net earnings for the quarter were $940,000, down from $1.3 million a year ago. "Earnings for the quarter were unfavorably impacted by the shipments of the remaining orders in the backlog that were bid in the prior year at extremely competitive pricing," the casegoods company said in its earnings release, which it attributed to "a major competitor exiting the marketplace, and to a lesser extent, by a higher effective income tax rate."

Incoming orders for its domestic business were strong during the quarter, Rausch says, as opportunities increased from the improving marketplace for laboratory furniture and scientific equipment in the United States. Growth is expectd in the markets of India and the Middle East, although the timing of international incoming orders continues its unevenness from quarter-to-quarter, Rausch says..

"In our Domestic business, incoming orders continued to be strong during the quarter, and profit margins improved over those of the past two quarters," said David M. Rausch,  CEO. "Our International business continues to see project opportunities globally from our expanded sales organization and the continued strengthening of the Kewaunee brand worldwide."

Rausch says Kewaunee "will continue to experience sales growth in fiscal year 2016. . My optimism is also based on our strong order backlog and expectations that our International business will continue its long-term progress."

Founded in 1906, Kewaunee Scientific designs, manufactures, and installs 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.

Kewaunee Scientific Corporation

Consolidated Statements of Operations (Unaudited)

(in thousands, except per share data)

         
   

Three months ended

   

July 31,

   

2015

 

2014

Net sales

 

$    31,089

 

$    30,534

Cost of products sold

 

25,246

 

24,386

Gross profit

 

5,843

 

6,148

Operating expenses

 

4,319

 

4,348

Operating earnings

 

1,524

 

1,800

Other income

 

102

 

126

Interest expense

 

(92)

 

(81)

Earnings before income taxes

 

1,534

 

1,845

Income tax expense

 

571

 

585

Net earnings

 

963

 

1,260

Less: net earnings attributable to the noncontrolling interest

 

23

 

26

Net earnings attributable to Kewaunee Scientific Corporation

 

$         940

 

$      1,234

         

Net earnings per share attributable to

       

    Kewaunee Scientific Corporation stockholders

       

       Basic

 

$0.36

 

$0.47

       Diluted

 

$0.35

 

$0.47

         

Weighted average number of common shares outstanding

       

       Basic

 

2,630

 

2,620

       Diluted

 

2,659

 

2,651

         
         

Kewaunee Scientific Corporation

Condensed Consolidated Balance Sheets

(in thousands)

         
   

July 31,

 

April 30,

   

2015

 

2015

Assets

 

(Unaudited)

   

Cash and cash equivalents

 

$      2,899

 

$      3,044

Restricted Cash

 

1,964

 

2,276

Receivables, less allowances

 

28,117

 

29,106

Inventories

 

13,970

 

12,745

Prepaid expenses and other current assets

 

2,521

 

1,591

    Total Current Assets

 

49,471

 

48,762

Net property, plant and equipment

 

14,374

 

14,523

Other assets

 

6,231

 

6,205

Total Assets

 

$    70,076

 

$    69,490

         

Liabilities and Equity

       

Short-term borrowings and interest rate swaps

 

$      4,901

 

$      4,955

Current portion of long-term debt

 

421

 

421

Accounts payable

 

11,760

 

11,232

Other current liabilities

 

3,866

 

4,447

    Total Current Liabilities

 

20,948

 

21,055

Other non-current liabilities

 

13,320

 

13,236

    Total Liabilities

 

34,268

 

34,291

Noncontrolling interest

 

268

 

323

Kewaunee Scientific Corporation stockholders' equity

 

35,540

 

34,876

    Total Equity

 

35,808

 

35,199

Total Liabilities and Stockholders's Equity

 

$    70,076

 

$    69,490

SOURCE Kewaunee Scientific Corporation

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