Kewaunee Scientific Corp. has a market cap of $30.65 million; its shares were traded at around $12 with a P/E ratio of 14.69 and P/S ratio of 0.31. The dividend yield of Kewaunee Scientific Corp. stocks is 3.36%.
Highlight of Business Operations:Sales for the three months ended January 31, 2011 were $22,568,000, up 3.5% from sales of $21,814,000 in the third quarter last year. Sales for the quarter were unfavorably affected when customers made changes to product designs and delivery dates for several significant orders, including one large international order, that delayed the start of manufacturing and shipment until late in the quarter and into the fourth quarter. Sales also reflect a continuing softness in the domestic marketplace for small and mid-sized laboratory projects. Domestic sales were $19,108,000, relatively flat from $19,081,000 in the third quarter last year, while international sales were $3,460,000, up from $2,733,000 in the third quarter last year.
Sales for the nine months ended January 31, 2011 were $73,051,000, down 2.8% from sales of $75,151,000, in the same period last year. Domestic operations sales were $62,324,000, down from sales of $67,152,000 in the same period last year. International operations sales were $10,727,000, up from sales of $7,999,000 in the same period last year.
Net earnings for the three months ended January 31, 2011 were $86,000, or $0.03 per diluted share, a decrease from net earnings of $621,000, or $0.24 per diluted share, in the third quarter of the prior year. Net earnings for the nine months were $1,598,000, or $0.62 per diluted share, down from net earnings of $3,044,000, or $1.18 per diluted share, for the same period last year. Earnings for the three and nine month periods of the current year were unfavorably impacted by continued aggressive pricing in all of the Companys markets, increased manufacturing costs, an unfavorable product mix, and high prices paid for epoxy resin raw materials.
The Company had working capital of $21,341,000 at January 31, 2011, compared to $20,085,000 at April 30, 2010. The ratio of current assets to current liabilities was 2.4-to-1.0 at January 31, 2011, compared to 2.1-to-1.0 at April 30, 2010. At January 31, 2011, advances of $696,000 were outstanding under the Companys bank revolving credit facility, as compared to advances of $4,872,000 outstanding as of April 30, 2010. Total bank borrowings and capital lease obligations were $4,752,000 at January 31, 2011, as compared to $5,073,000 at April 30, 2010.
The Companys operations provided cash of $6,135,000 during the nine months ended January 31, 2011. Cash was primarily provided from a reduction of $5,094,000 in receivables and from operating earnings, partially offset by an increase in inventories of $2,171,000. The Companys operations provided cash of $5,027,000 during the nine months ended January 31, 2010, with cash primarily provided from operating earnings and a reduction of $1,412,000 in receivables, partially offset by a decrease of $1,506,000 in accounts payable and accrued expenses.
The Companys financing activities used cash of $1,062,000 during the nine months ended January 31, 2011. Uses of cash include $4,176,000 for repayment of short-term borrowings, $772,000 for cash dividends, $83,000 for payments on long-term debt, and $62,000 for payments on obligations of capital leases. Cash of $4,000,000 was provided from new long-term debt, as discussed in Note G, to fund the expansion of the Statesville manufacturing facilities. Financing activities used cash of $3,694,000 in the same period for the prior year, which included $2,811,000 for repayments of short-term borrowings, $719,000 for payments of cash dividends, and $186,000 for payments on obligations of capital leases.
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