Kewaunee Scientific Corp. has a market cap of $26.8 million; its shares were traded at around $10.4 with a P/E ratio of 8.5 and P/S ratio of 0.3. The dividend yield of Kewaunee Scientific Corp. stocks is 3.8%.
Highlight of Business Operations:Sales for the three months ended July 31, 2010 were $24,858,000, a decrease of 5% from sales of $26,249,000 in the same period last year. Sales from Domestic Operations were $20,948,000, a decrease of 10% from the prior year period. The decline was primarily the result of on-going softness in the marketplace for small and mid-sized laboratory projects and the scheduled timing of shipments in the order backlog. Sales from International Operations were $3,910,000, an increase of 35% from the prior year period, as the Company experienced increased international sales opportunities.
Income tax expense of $329,000 was recorded for the three months ended July 31, 2010, as compared to income tax expense of $589,000 recorded for the comparable period of the prior year. The effective tax rate was 31.2% for the three months ended July 31, 2010, and was 33.5% for the comparable period of the prior year. The effective tax rates for each of the current year and prior year period were below the statutory tax rates due to the combination of lower income tax rates in the geographic locations of the Companys subsidiaries and the impact of state and federal income tax credits on domestic operations income.
Net earnings were $657,000, or $0.25 per diluted share, for the three months ended July 31, 2010. This compares to net earnings of $1,071,000, or $0.42 per diluted share, for the comparable period of the prior year.
The Company had working capital of $18.9 million at July 31, 2010, compared to $20.1 million at April 30, 2010. The ratio of current assets to current liabilities was 1.9-to-1.0 at July 31, 2010, compared to 2.1-to-1.0 at April 30, 2010. At July 31, 2010, advances of $7,496,000 were outstanding under the Companys bank revolving credit facility, as compared to advances of $4,872,000 outstanding as of April 30, 2010.
The Companys operations used cash of $88,000 during the three months ended July 31, 2010. Cash was provided from operating earnings and offset by an increase of $1,299,000 in accounts receivable. The Companys operations provided cash of $1,246,000 during the three months ended July 31, 2009 as cash provided from earnings and a decrease of $616,000 in accounts receivable, which were partially offset by cash used to fund an increase in inventory on hand.
The Companys financing activities provided cash of $2,342,000 during the three months ended July 31, 2010. Cash provided included $2,624,000 received from short-term borrowings, which was partially offset by cash dividends of $257,000 paid to stockholders. Financing activities provided cash of $223,000 during the three months ended July 31, 2009. Cash provided included $509,000 received from short-term borrowings, which was partially offset by cash dividends paid of $205,000 and payments on obligations under capital leases of $81,000.
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