Kewaunee Scientific Reports Results for First Quarter of Fiscal Year 2021
Kewaunee Scientific Corporation reported results for its first quarter of fiscal year 2021, ended July 31, 2020.
Sales for the quarter were $36,423,000, a 7.4% decrease from sales of $39,336,000 in the prior year first quarter. Pre-tax loss for the quarter was $587,000 compared to pre-tax earnings of $665,000 for the prior year period. Net earnings decreased 227% for the quarter to a loss of $598,000, or ($0.22) per diluted share, as compared to net earnings of $471,000, or $0.17 per diluted share, for the quarter ended July 31, 2019. EBITDA for the quarter was $137,000 compared to $1,300,000 for the prior year period. The Company’s order backlog was $101 million at July 31, 2020, as compared to $101 million at April 30, 2020 and $102 million at July 31, 2019.
Domestic sales for the quarter were $30,058,000, an increase of 2.6% from sales of $29,287,000 in the first quarter of last year. Net earnings for the Domestic Segment was $993,000 compared to $1,395,000 for the prior year period. Domestic segment EBITDA was $1,605,000 compared to $2,125,000 for the prior year period. While sales increased slightly during the period when compared to the prior year period, delays in project completion and access to construction sites due to the coronavirus (“COVID-19”) pandemic continued to impact the pace at which the segment was able to operate during the quarter. Segment gross profit was generally flat year-over-year, while an increase in operating expenses, to support our strategic initiatives, unfavorably impacted pre-tax earnings as compared to the prior year period.
International sales for the quarter were $6,365,000, down 36.7% from sales of $10,049,000 in the first quarter last year. Net earnings for the International Segment was $124,000 compared to $420,000 for the prior year period. International Segment EBITDA was $165,000 compared to $514,000 for the prior year period. The decrease in sales and profitability was similarly attributable to reduced access to construction sites and re-imposed government mandated shut-downs in India during the quarter due to COVID-19.
Corporate expenses for the quarter were $1,715,000, an increase of 27.6% from corporate expenses of $1,344,000 in the first quarter of last year. The primary driver of increased corporate expenses was an increase in pension expense due to changes in underlying valuation assumptions as of April 30, 2020.
Liquidity and Managed Working Capital
Cash on hand was $4,825,000 at the end of the quarter, as compared to $5,215,000 at April 30, 2020. Working capital was $27,818,000, as compared to $27,171,000 at April 30, 2020. Short-term debt was $8,524,000 at the end of the quarter, as compared to $4,719,000 at April 30, 2020. The debt-to-equity ratio at July 31, 2020 was .46-to-1, as compared to .36-to-1 at April 30, 2020.
“We continue to manage the business in a manner to support our customers and their evolving expectations due to the restrictions that COVID-19 is placing on construction activity globally,” said Thomas D. Hull III, Kewaunee’s President and Chief Executive Officer. “During the first quarter, limitations continued within our operations and across the geographies we service due to continued government mandated coronavirus restrictions. We did manage to maintain our backlog throughout the quarter and we continue to see strong activity in the marketplace from a planning, budgeting and bidding perspective. This activity, however, is not yet translating into awarded projects due to delays in the decision-making process. I continue to believe that demand for laboratory furniture and technical products will ultimately strengthen in the long-term, and that Kewaunee is positioned well within the market to participate when investments requiring our products arise.”
For the full first quarter results, click here.
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. The Company’s 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 and Singapore. 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. Kewaunee Scientific’s website is located at http://www.kewaunee.com.
Donald T. Gardner III – Media Contact – (704) 871-3274
Source: Kewaunee Scientific Corporation