Kewaunee Scientific Corp. (KEQU, Financial) filed Quarterly Report for the period ended 2009-01-31.
Kewaunee Scientific Corporation is a recognized leader in the design manufacture and installation of scientific and technical furniture. The Company's corporate headquarters and domestic manufacturing facilities are located in Statesville North Carolina. The Company also has subsidiaries in Singapore and Bangalore India that serve the Asian markets. Kewaunee Scientific Corp. has a market cap of $21.8 million; its shares were traded at around $8.51 with a P/E ratio of 5.8 and P/S ratio of 0.2. The dividend yield of Kewaunee Scientific Corp. stocks is 3.8%.
Operating expenses for the three months ended January 31, 2009 were $3,440,000, or 13.2% of sales, as compared to $3,293,000, or 15.0% of sales, in the comparable period of the prior year. Operating expenses for the nine months ended January 31, 2009 were $10,884,000, or 13.8% of sales, as compared to $9,811,000, or 14.6% of sales, in the comparable period of the prior year. The increase in operating expense dollars for the current quarter was primarily due to an increase of $155,000 in administrative salaries, an increase of $75,000 for costs associated with benefit plans, and an increase of $49,000 in depreciation expense. Operating expenses in the current quarter were favorably impacted by a $95,000 reduction in expenses associated with incentive compensation plans and a $125,000 reduction in professional and consulting expenses. The increase in operating expense dollars for the nine months of the current year was primarily due to an increase of $370,000 in administrative salaries, an increase of $213,000 for costs associated with benefit plans, an increase of $178,000 in sales and marketing expenses, and an increase of $130,000 in depreciation expense. Operating expenses for the nine months of the current year were favorably impacted by a $133,000 reduction in professional and consulting expenses as compared to the same period of the prior year.
Net earnings were $882,000, or $0.35 per diluted share, and $3,327,000, or $1.30 per diluted share, for the three and nine months ended January 31, 2009. The compares to net earnings of $802,000, or $0.31 per diluted share, and $2,688,000, or $1.05 per diluted share, for the comparable periods of the prior year.
The Company had working capital of $17.7 million at January 31, 2009, compared to $15.9 million at April 30, 2008. The ratio of current assets to current liabilities was 1.9-to-1 at January 31, 2009, unchanged from April 30, 2008. At January 31, 2009, advances of $5,815,000 were outstanding under the Companys bank revolving credit facility, as compared to advances of $4,551,000 outstanding as of April 30, 2008. In October 2008, the Company increased the revolving credit facility from $12 million to $14 million under the same terms and conditions as the $12 million arrangement.
The Companys operations provided cash of $340,000 during the nine months ended January 31, 2009. Cash was provided primarily from operating earnings, which was substantially offset by cash used to fund an increase of $4,800,000 in accounts receivable related to the higher sales volumes. The Companys operations provided cash of $1,992,000 during the nine months ended January 31, 2008. Cash was provided primarily from operating earnings, which was partially offset by an increase in accounts receivable of $914,000 and a decrease in deferred revenue of $962,000.
The Companys financing activities used cash of $27,000 during the nine months ended January 31, 2009. Cash used included cash dividends of $498,000 paid to minority interest holders of the Companys subsidiaries, cash dividends of $613,000 paid to stockholders, payments on obligations of capital leases of $280,000, and purchases of treasury stock of $198,000. Cash was provided during this period by an increase of $1,264,000 in short-term borrowings and $298,000 in proceeds received from the exercise of stock options. Financing activities used cash of $64,000 in the same period for the prior year, including $530,000 for cash dividends paid to stockholders, and $266,000 for payments on obligations under capital leases. Cash was provided during this period by proceeds of $548,000 from the exercise of stock options and an increase of $184,000 in short-term borrowings.
Read the The complete ReportKEQU is in the portfolios of Ian Cumming of Leucadia National.
Kewaunee Scientific Corporation is a recognized leader in the design manufacture and installation of scientific and technical furniture. The Company's corporate headquarters and domestic manufacturing facilities are located in Statesville North Carolina. The Company also has subsidiaries in Singapore and Bangalore India that serve the Asian markets. Kewaunee Scientific Corp. has a market cap of $21.8 million; its shares were traded at around $8.51 with a P/E ratio of 5.8 and P/S ratio of 0.2. The dividend yield of Kewaunee Scientific Corp. stocks is 3.8%.
Highlight of Business Operations:
Sales for the nine months ended January 31, 2009 were $79,150,000, an increase of 17% from sales of $67,394,000 in the same period last year. Sales from Domestic Operations were $67,296,000, an increase of 21% from the prior year period. Sales from International Operations were $11,854,000, an increase of 2% from the prior year period. The order backlog at January 31, 2009 was $60.7 million, as compared to a backlog of $61.6 million at October 31, 2008 and $58.8 million at January 31, 2008.Operating expenses for the three months ended January 31, 2009 were $3,440,000, or 13.2% of sales, as compared to $3,293,000, or 15.0% of sales, in the comparable period of the prior year. Operating expenses for the nine months ended January 31, 2009 were $10,884,000, or 13.8% of sales, as compared to $9,811,000, or 14.6% of sales, in the comparable period of the prior year. The increase in operating expense dollars for the current quarter was primarily due to an increase of $155,000 in administrative salaries, an increase of $75,000 for costs associated with benefit plans, and an increase of $49,000 in depreciation expense. Operating expenses in the current quarter were favorably impacted by a $95,000 reduction in expenses associated with incentive compensation plans and a $125,000 reduction in professional and consulting expenses. The increase in operating expense dollars for the nine months of the current year was primarily due to an increase of $370,000 in administrative salaries, an increase of $213,000 for costs associated with benefit plans, an increase of $178,000 in sales and marketing expenses, and an increase of $130,000 in depreciation expense. Operating expenses for the nine months of the current year were favorably impacted by a $133,000 reduction in professional and consulting expenses as compared to the same period of the prior year.
Net earnings were $882,000, or $0.35 per diluted share, and $3,327,000, or $1.30 per diluted share, for the three and nine months ended January 31, 2009. The compares to net earnings of $802,000, or $0.31 per diluted share, and $2,688,000, or $1.05 per diluted share, for the comparable periods of the prior year.
The Company had working capital of $17.7 million at January 31, 2009, compared to $15.9 million at April 30, 2008. The ratio of current assets to current liabilities was 1.9-to-1 at January 31, 2009, unchanged from April 30, 2008. At January 31, 2009, advances of $5,815,000 were outstanding under the Companys bank revolving credit facility, as compared to advances of $4,551,000 outstanding as of April 30, 2008. In October 2008, the Company increased the revolving credit facility from $12 million to $14 million under the same terms and conditions as the $12 million arrangement.
The Companys operations provided cash of $340,000 during the nine months ended January 31, 2009. Cash was provided primarily from operating earnings, which was substantially offset by cash used to fund an increase of $4,800,000 in accounts receivable related to the higher sales volumes. The Companys operations provided cash of $1,992,000 during the nine months ended January 31, 2008. Cash was provided primarily from operating earnings, which was partially offset by an increase in accounts receivable of $914,000 and a decrease in deferred revenue of $962,000.
The Companys financing activities used cash of $27,000 during the nine months ended January 31, 2009. Cash used included cash dividends of $498,000 paid to minority interest holders of the Companys subsidiaries, cash dividends of $613,000 paid to stockholders, payments on obligations of capital leases of $280,000, and purchases of treasury stock of $198,000. Cash was provided during this period by an increase of $1,264,000 in short-term borrowings and $298,000 in proceeds received from the exercise of stock options. Financing activities used cash of $64,000 in the same period for the prior year, including $530,000 for cash dividends paid to stockholders, and $266,000 for payments on obligations under capital leases. Cash was provided during this period by proceeds of $548,000 from the exercise of stock options and an increase of $184,000 in short-term borrowings.
Read the The complete ReportKEQU is in the portfolios of Ian Cumming of Leucadia National.
