10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_________________________

FORM 10-Q

_________________________

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 31, 2023

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission file number 0-5286

_________________________

KEWAUNEE SCIENTIFIC CORPORATION

(Exact name of registrant as specified in its charter)

_________________________

Delaware	38-0715562
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
2700 West Front Street Statesville, North Carolina	28677-2927
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code: (704) 873-7202

Securities registered pursuant to Section 12(b) of the Act:

    Title of Each Class            Trading Symbol(s)    Name of Exchange on which registered

Common Stock, $2.50 par value             KEQU             NASDAQ Global Market

_________________________

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

As of August 29, 2023, the registrant had outstanding 2,904,094 shares of Common Stock.

KEWAUNEE SCIENTIFIC CORPORATION

INDEX TO FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED JULY 31, 2023

		Page Number
PART I. FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements
	Condensed Consolidated Statements of Operations (unaudited) – Three Months Ended July 31, 2023 and 2022	1
	Condensed Consolidated Statements of Comprehensive Earnings (Loss) (unaudited) – Three Months Ended July 31, 2023 and 2022	2
	Condensed Consolidated Statements of Stockholders' Equity (unaudited) – Three Months Ended July 31, 2023 and 2022	3
	Condensed Consolidated Balance Sheets – July 31, 2023 (unaudited) and April 30, 2023	4
	Condensed Consolidated Statements of Cash Flows (unaudited) – Three Months Ended July 31, 2023 and 2022	5
	Notes to Condensed Consolidated Financial Statements (unaudited)	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	12
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	13
Item 4.	Controls and Procedures	13
PART II. OTHER INFORMATION
Item 1A.	Risk Factors	15
Item 5.	Other Information	15
Item 6.	Exhibits	15
SIGNATURES		16

i

Part 1. Financial Information

Item 1.    Condensed Consolidated Financial Statements

Kewaunee Scientific Corporation

Condensed Consolidated Statements of Operations

(Unaudited)

($ and shares in thousands, except per share amounts)

	Three Months Ended July 31,
	2023		2022
Net sales	$	49,839	$	50,123
Cost of products sold	37,925		43,927
Gross profit	11,914		6,196
Operating expenses	8,106		6,592
Operating profit (loss)	3,808		(396)
Pension expense	(41)		(27)
Other income, net	75		467
Interest expense	(430)		(384)
Profit (loss) before income taxes	3,412		(340)
Income tax expense	897		379
Net earnings (loss)	2,515		(719)
Less: Net earnings attributable to the non-controlling interest	41		28
Net earnings (loss) attributable to Kewaunee Scientific Corporation	$	2,474	$	(747)
Net earnings (loss) per share attributable to Kewaunee Scientific Corporation stockholders
Basic	$	0.87	$	(0.27)
Diluted	$	0.86	$	(0.27)
Weighted average number of common shares outstanding
Basic	2,860		2,807
Diluted	2,885		2,807

See accompanying notes to Condensed Consolidated Financial Statements.

1

Kewaunee Scientific Corporation

Condensed Consolidated Statements of Comprehensive Earnings (Loss)

(Unaudited)

($ in thousands)

	Three Months Ended July 31,
	2023		2022
Net earnings (loss)	$	2,515	$	(719)
Other comprehensive loss, net of tax:
Foreign currency translation adjustments	(144)		(224)
Other comprehensive loss	(144)		(224)
Comprehensive earnings (loss), net of tax	2,371		(943)
Less: Comprehensive income attributable to the non-controlling interest	41		28
Comprehensive earnings (loss) attributable to Kewaunee Scientific Corporation	$	2,330	$	(971)

See accompanying notes to Condensed Consolidated Financial Statements.

2

Kewaunee Scientific Corporation

Condensed Consolidated Statements of Stockholders' Equity

(Unaudited)

($ in thousands, except per share amounts)

	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Loss		Total Kewaunee Scientific Corporation Stockholders' Equity
Balance at April 30, 2023	$	7,084	$	5,059	$	(53)	$	28,761	$	(3,442)	$	37,409
Net earnings attributable to Kewaunee Scientific Corporation	—		—		—		2,474		—		2,474
Other comprehensive loss	—		—		—		—		(144)		(144)
Stock-based compensation	185		(494)		—		—		—		(309)
Balance at July 31, 2023	$	7,269	$	4,565	$	(53)	$	31,235	$	(3,586)	$	39,430

	Common Stock		Additional Paid-in Capital		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Loss		Total Kewaunee Scientific Corporation Stockholders' Equity
Balance at April 30, 2022	$	6,983	$	4,483	$	(53)	$	28,023	$	(3,742)	$	35,694
Net loss attributable to Kewaunee Scientific Corporation	—		—		—		(747)		—		(747)
Other comprehensive loss	—		—		—		—		(224)		(224)
Stock-based compensation	97		(134)		—		—		—		(37)
Balance at July 31, 2022	$	7,080	$	4,349	$	(53)	$	27,276	$	(3,966)	$	34,686

See accompanying notes to Condensed Consolidated Financial Statements.

3

Kewaunee Scientific Corporation

Condensed Consolidated Balance Sheets

($ and shares in thousands, except per share amounts)

	July 31, 2023		April 30, 2023
	(Unaudited)
Assets
Current Assets:
Cash and cash equivalents	$	12,699	$	8,078
Restricted cash	8,869		5,737
Receivables, less allowance; $560; $476, on each respective date	42,461		46,081
Inventories	22,126		21,889
Prepaid expenses and other current assets	7,365		6,135
Total Current Assets	93,520		87,920
Property, plant and equipment, at cost	63,023		61,368
Accumulated depreciation	(45,684)		(44,966)
Net Property, Plant and Equipment	17,339		16,402
Right of use assets	8,612		9,170
Other assets	5,347		5,406
Total Assets	$	124,818	$	118,898
Liabilities and Stockholders' Equity
Current Liabilities:
Short-term borrowings	$	5,054	$	3,587
Current portion of financing liability	659		642
Current portion of financing lease liabilities	86		85
Current portion of operating lease liabilities	1,912		1,967
Accounts payable	22,140		23,599
Employee compensation and amounts withheld	4,903		4,304
Deferred revenue	7,067		4,097
Other accrued expenses	2,408		1,772
Total Current Liabilities	44,229		40,053
Long-term portion of financing liability	27,958		28,132
Long-term portion of financing lease liabilities	143		148
Long-term portion of operating lease liabilities	6,645		7,136
Accrued pension and deferred compensation costs	3,861		3,546
Deferred income taxes	989		943
Other non-current liabilities	453		455
Total Liabilities	84,278		80,413
Commitments and Contingencies
Stockholders' Equity:
Common stock, $2.50 par value, Authorized – 5,000 shares; Issued – 2,907 shares; 2,833 shares; – Outstanding – 2,904 shares; 2,830 shares, on each respective date	7,269		7,084
Additional paid-in-capital	4,565		5,059
Retained earnings	31,235		28,761
Accumulated other comprehensive loss	(3,586)		(3,442)
Common stock in treasury, at cost, 3 shares, on each respective date	(53)		(53)
Total Kewaunee Scientific Corporation Stockholders' Equity	39,430		37,409
Non-controlling interest	1,110		1,076
Total Stockholders' Equity	40,540		38,485
Total Liabilities and Stockholders' Equity	$	124,818	$	118,898

See accompanying notes to Condensed Consolidated Financial Statements.

4

Kewaunee Scientific Corporation

Condensed Consolidated Statements of Cash Flows

(Unaudited)

($ in thousands)

	Three Months Ended July 31,
	2023		2022
Cash flows from operating activities:
Net earnings (loss)	$	2,515	$	(719)
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Depreciation	718		725
Bad debt provision	125		23
Stock-based compensation expense	183		172
Deferred income taxes	46		23
Change in assets and liabilities:
Receivables	3,496		516
Inventories	(237)		(1,304)
Accounts payable and other accrued expenses	(226)		(2,117)
Deferred revenue	2,970		10,587
Other, net	(1,418)		(4,221)
Net cash provided by operating activities	8,172		3,685
Cash flows from investing activities:
Capital expenditures	(1,654)		(390)
Net cash used in investing activities	(1,654)		(390)
Cash flows from financing activities:
Proceeds from short-term borrowings	40,597		4,431
Repayments on short-term borrowings	(39,130)		(6,019)
Proceeds from sale-leaseback financing transaction	—		13,456
Payments on sale-leaseback financing transaction	(157)		(140)
Payments on long-term lease obligations	(4)		(58)
Net cash provided by financing activities	1,306		11,670
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(71)		(325)
Increase in cash, cash equivalents and restricted cash	7,753		14,640
Cash, cash equivalents and restricted cash, beginning of period	13,815		6,894
Cash, cash equivalents and restricted cash, end of period	$	21,568	$	21,534

See accompanying notes to Condensed Consolidated Financial Statements.

5

Kewaunee Scientific Corporation

Notes to Condensed Consolidated Financial Statements

(unaudited)

A. Financial Information

The unaudited interim Condensed Consolidated Financial Statements of Kewaunee Scientific Corporation (the "Company") have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted, although the Company believes that the disclosures are adequate to make the information presented not misleading.

These interim Condensed Consolidated Financial Statements include all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of these financial statements and should be read in conjunction with the Consolidated Financial Statements and Notes included in the Company's 2023 Annual Report on Form 10-K. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. The Condensed Consolidated Balance Sheet as of April 30, 2023 included in this interim period filing has been derived from the audited consolidated financial statements at that date, but does not include all of the information and related notes required by GAAP for complete financial statements.

The preparation of the interim Condensed Consolidated Financial Statements requires management to make certain estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates.

B. Cash, Cash Equivalents and Restricted Cash

Cash and cash equivalents consist of cash on hand and highly liquid investments with original maturities of three months or less. During the three months ended July 31, 2023 and twelve months ended April 30, 2023, the Company had cash deposits in excess of FDIC insured limits. The Company has not experienced any losses from such deposits. Restricted cash includes bank deposits of subsidiaries used for performance guarantees against customer orders and domestic bank deposits used as collateral for an outstanding letter of credit.

The Company includes restricted cash along with the cash balance for presentation in the Condensed Consolidated Statements of Cash Flows. The reconciliation between the Condensed Consolidated Balance Sheet and the Condensed Consolidated Statement of Cash Flows is as follows:

	July 31, 2023		April 30, 2023
Cash and cash equivalents	$	12,699	$	8,078
Restricted cash	8,869		5,737
Total cash, cash equivalents and restricted cash	$	21,568	$	13,815

C. Revenue Recognition

The Company recognizes revenue when control of a good or service promised in a contract (i.e., performance obligation) is transferred to a customer. Control is obtained when a customer has the ability to direct the use of and obtain substantially all of the remaining benefits from that good or service. The majority of the Company's revenues are recognized over time as the customer receives control as the Company performs work under a contract. However, a portion of the Company's revenues are recognized at a point-in-time as control is transferred at a distinct point in time per the terms of a contract.

6

Disaggregated Revenue

A summary of net sales transferred to customers over time and at a point in time for the periods ended July 31, 2023 and July 31, 2022 is as follows (in thousands):

	Three Months Ended
	July 31, 2023						July 31, 2022
	Domestic		International		Total		Domestic		International		Total
Over Time	$	33,904	$	14,419	$	48,323	$	35,353	$	12,655	$	48,008
Point in Time	1,516		—		1,516		2,115		—		2,115
Total	$	35,420	$	14,419	$	49,839	$	37,468	$	12,655	$	50,123

Contract Balances

The closing balances of contract assets included $13,621,000 in accounts receivable and $928,000 in other assets at July 31, 2023. The opening balance of contract assets arising from contracts with customers included $13,459,000 in accounts receivable and $1,191,000 in other assets at April 30, 2023. The closing and opening balances of contract liabilities included in deferred revenue arising from contracts with customers were $7,067,000 at July 31, 2023 and $4,097,000 at April 30, 2023. The timing of revenue recognition, billings and cash collections results in accounts receivable, unbilled receivables, and deferred revenue which are disclosed in the Condensed Consolidated Balance Sheets and in the Notes to the Condensed Consolidated Financial Statements. In general, the Company receives payments from customers based on a billing schedule established in its contracts. Unbilled receivables represent amounts earned which have not yet been billed in accordance with contractually stated billing terms and are included in receivables on the Condensed Consolidated Balance Sheets. Receivables are recorded when the right to consideration becomes unconditional and the Company has a right to invoice the customer. Deferred revenue relates to payments received in advance of performance under the contract. Deferred revenue is recognized as revenue as (or when) the Company performs under the contract. Approximately 100% of the contract liability balances at April 30, 2023 and July 31, 2023 are expected to be recognized as revenue during the respective succeeding 12 months.

D. Inventories

The Company measures inventory using the first-in, first-out method at the lower of cost or net realizable value. Inventories consisted of the following (in thousands):

	July 31, 2023		April 30, 2023
Finished products	$	3,537	$	3,412
Work in process	2,138		2,380
Raw materials	16,451		16,097
Total	$	22,126	$	21,889

The Company's International subsidiaries' inventories were $2,902,000 at July 31, 2023 and $2,740,000 at April 30, 2023 and are included in the above tables.

7

E. Fair Value of Financial Instruments

The Company's financial instruments consist primarily of cash and equivalents, mutual funds, short-term borrowings, and the cash surrender value of life insurance policies. The carrying value of these assets and liabilities approximates their fair value. The following tables summarize the Company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of July 31, 2023 and April 30, 2023 (in thousands):

	July 31, 2023
Financial Assets	Level 1		Level 2		Total
Trading securities held in non-qualified compensation plans (1)	$	1,324	$	—	$	1,324
Cash surrender value of life insurance policies (1)	—		1,401		1,401
Total	$	1,324	$	1,401	$	2,725
Financial Liabilities
Non-qualified compensation plans (2)	$	—	$	3,185	$	3,185
Total	$	—	$	3,185	$	3,185

	April 30, 2023
Financial Assets	Level 1		Level 2		Total
Trading securities held in non-qualified compensation plans (1)	$	1,105	$	—	$	1,105
Cash surrender value of life insurance policies (1)	—		1,358		1,358
Total	$	1,105	$	1,358	$	2,463
Financial Liabilities
Non-qualified compensation plans (2)	$	—	$	2,910	$	2,910
Total	$	—	$	2,910	$	2,910

(1)The Company maintains two non-qualified compensation plans which include investment assets in a rabbi trust. These assets consist of marketable securities, which are valued using quoted market prices multiplied by the number of shares owned, and life insurance policies, which are valued at their cash surrender value.

(2)Plan liabilities are equal to the individual participants' account balances and other earned retirement benefits.

F. Long-term Debt and Other Credit Arrangements

At April 30, 2023, advances of $3.5 million were outstanding under the Company's Revolving Credit Facility. Amounts available under the Revolving Credit Facility were $10.3 million at April 30, 2023. The borrowing rate under the Revolving Credit Facility was 9.02% as of April 30, 2023. The Company's International subsidiaries had a balance outstanding of $39,000 in short-term borrowings related to overdraft protection and short-term loan arrangements. At April 30, 2023, the Company was in compliance with all of the financial covenants under its Revolving Credit Facility.

At July 31, 2023, there were $5.0 million outstanding under the Revolving Credit Facility, with remaining borrowing capacity under the Revolving Credit Facility of $8.3 million. The borrowing rate under the Revolving Credit Facility was 9.33% as of July 31, 2023. In addition, the Company's International subsidiaries have a balance outstanding of $54,000 in short-term borrowings related to overdraft protection and short-term loan arrangements. As of July 31, 2023, the Company was in compliance with all of the financial covenants under its Revolving Credit Facility.

G. Sale-Leaseback Financing Transaction

On December 22, 2021, the Company entered into an Agreement for Purchase and Sale of Real Property with CAI Investments Sub-Series 100 LLC, a Nevada limited liability company (the "Buyer"), for the Company’s headquarters and manufacturing facilities located at 2700 West Front Street in Statesville, North Carolina (the "Sale Agreement").

The Sale Agreement was finalized on March 24, 2022 and coincided with the Company and CAI Investments Medical Products I Master Lessee LLC ("Lessor") entering into a lease agreement. The lease arrangement is for a 20-year term, with four renewal options of five years each. Under the terms of the lease agreement, the Company’s initial basic rent is approximately $158,000 per month, with annual increases of approximately 2% each year of the initial term.

The Company accounted for the Sale-Leaseback Arrangement as a financing transaction as the lease agreement was determined to be a finance lease due to the significance of the present value of the lease payments, using a discount rate of 4.75% to reflect

8

the Company’s incremental borrowing rate, compared to the fair value of the leased property as of the lease commencement date. In measuring the lease payments for the present value analysis, the Company elected the practical expedient to combine the lease component (the leased facilities) with the non-lease component (property management provided by the Buyer/Lessor) into a single lease component.

The presence of a finance lease indicates that control of the property has not transferred to the Buyer/Lessor and, as such, the transaction was deemed a failed sale-leaseback and accounted for as a financing arrangement. As a result of this determination, the Company is viewed as having received the sale proceeds from the Buyer/Lessor in the form of a hypothetical loan collateralized by its leased facilities. The hypothetical loan is payable as principal and interest in the form of “lease payments” to the Buyer/Lessor. As such, the Company will not derecognize the property from its books for accounting purposes until the lease ends. No gain or loss was recognized under GAAP related to the Sale-Leaseback Arrangement.

As of July 31, 2023, the carrying value of the financing liability was $28,617,000, net of $692,000 in debt issuance costs, of which $659,000 was classified as current on the Consolidated Balance Sheet with $27,958,000 classified as long-term. As of April 30, 2023, the carrying value of the financing liability was $28,774,000, net of $708,000 in debt issuance costs, of which $642,000 was classified as current on the Consolidated Balance Sheet with $28,132,000 classified as long-term. The monthly lease payments are split between a reduction of principal and interest expense using the effective interest rate method. Interest expense associated with the financing arrangement was $325,000 and $332,000 for the three months ended July 31, 2023 and July 31, 2022, respectively.

The Company will depreciate the building down to zero over the 20-year assumed economic life of the Property so that at the end of the lease term, the remaining carrying amount of the financing liability will equal the carrying amount of the land of $41,000.

Remaining future cash payments related to the financing liability as of July 31, 2023 are as follows:

($ in thousands)
Remainder of 2024	$	1,449
2025	1,970
2026	2,009
2027	2,050
2028	2,090
Thereafter	33,867
Total Minimum Liability Payments	43,435
Imputed Interest	(14,818)
Total	$	28,617

H. Leases

The Company recognizes lease assets and lease liabilities reflecting the rights and obligations created by operating type leases for real estate and equipment in both the U.S. and internationally and financing leases for a truck and IT equipment in the U.S. At July 31, 2023 and April 30, 2023, right-of-use assets totaled $8,612,000 and $9,170,000, respectively. Operating cash paid to settle lease liabilities was $639,000 and $524,000 for the three months ended July 31, 2023 and July 31, 2022, respectively. The Company's leases have remaining lease terms of up to 9 years. In addition, some of the leases may include options to extend the leases for up to 5 years or options to terminate the leases within 1 year. Operating lease expenses were $867,000 for the three months ended July 31, 2023, inclusive of period cost for short-term leases, not included in lease liabilities, of $228,000. Operating lease expenses were $835,000 for the three months ended July 31, 2022, inclusive of period cost for short-term leases, not included in lease liabilities, of $311,000.

At July 31, 2023, the weighted average remaining lease term for the capitalized operating leases was 4.9 years and the weighted average discount rate was 5.0%. For the financing leases, the weighted average remaining lease term was 2.9 years and the weighted average discount rate was 6.7%. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of those lease payments. The Company uses the implicit rate when readily determinable.

9

Future minimum lease payments under non-cancelable leases as of July 31, 2023 were as follows:

	Operating		Financing
Remainder of fiscal 2024	$	1,730	$	83
2025	2,172		91
2026	1,917		71
2027	1,654		—
2028	1,127		—
Thereafter	1,377		—
Total Minimum Lease Payments	9,977		245
Imputed Interest	(1,421)		(16)
Total	$	8,556	$	229

I. Earnings Per Share

Basic earnings per share is based on the weighted average number of common shares outstanding during the year. Diluted earnings per share reflects the assumed exercise of outstanding options and the conversion of restricted stock units ("RSUs") under the Company's various stock compensation plans, except when RSUs and options have an antidilutive effect. There were 33,700 and 104,141 antidilutive RSUs and options outstanding at July 31, 2023 and July 31, 2022, respectively. The following is a reconciliation of basic to diluted weighted average common shares outstanding (in thousands):

	Three Months Ended
	July 31, 2023	July 31, 2022
Basic	2,860	2,807
Dilutive effect of stock options and RSUs	25	—
Weighted average common shares outstanding - diluted	2,885	2,807

J. Stock Options and Stock-based Compensation

The Company recognizes compensation costs related to stock options and other stock awards granted by the Company as operating expenses over their vesting period.

In June 2023, the Company granted 87,220 RSUs under the 2017 Omnibus Incentive Plan ("2017 Plan"). These RSUs include both a service and a performance component, vesting over a three-year period. The recognized expense is based upon the vesting period for service criteria and estimated attainment of the performance criteria at the end of the three-year period, based on the ratio of cumulative days of service to total days over the three-year period. The Company recorded stock-based compensation expense during the three months ended July 31, 2023 of $173,000 with the remaining estimated stock-based compensation expense of $2,032,000 to be recorded over the remaining vesting periods. The Company recorded stock-based compensation expense during the three months ended July 31, 2022 of $131,000. Directors' fees paid with shares of common stock in lieu of cash in accordance with Director compensation guidelines were $10,000 and $41,000 for the three month periods ended July 31, 2023 and July 31, 2022, respectively, and were also included in the stock-based compensation on the Condensed Consolidated Statements of Cash Flows.

K. Income Taxes

Income tax expense of $897,000 and $379,000 was recorded for the three months ended July 31, 2023 and July 31, 2022, respectively. The effective tax rate was 26.3% and (111.5)% for the three months ended July 31, 2023 and July 31, 2022, respectively. The effective tax rate for the three months ended July 31, 2023 reflects the impact of foreign operations which are taxed at different rates than the U.S. tax rate of 21%, combined with expected current year tax expense for the Company's domestic operations in excess of the change in domestic valuation allowance required for the fiscal year. The effective tax rate for the three months ended July 31, 2022 reflected the impact of foreign operations and the recording of a valuation allowance against the deferred tax asset which resulted in the elimination of any U.S. income tax benefit for pretax losses incurred during the period.

In August 2019, the Company revoked its indefinite reinvestment of foreign unremitted earnings position in compliance with ASC 740 "Income Taxes" and terminated its indefinite reinvestment of unremitted earnings assertion for the Singapore and

10

Kewaunee Labway India Pvt. Ltd. international subsidiaries. The Company has a deferred tax liability of $1,363,000 and $1,318,000 for the withholding tax related to Kewaunee Labway India Pvt. Ltd. as of July 31, 2023 and April 30, 2023, respectively.

L. Defined Benefit Pension Plans

The Company has non-contributory defined benefit pension plans covering substantially all domestic salaried and hourly employees. These plans were amended as of April 30, 2005; no further benefits have been, or will be, earned under the plans, subsequent to the amendment date, and no additional participants will be added to the plans. There were no Company contributions paid to the plans for the three months ended July 31, 2023 and July 31, 2022. The Company assumed an expected long-term rate of return of 7.75% for the periods ended July 31, 2023 and July 31, 2022.

Pension expense consisted of the following (in thousands):

	Three Months Ended
	July 31, 2023		July 31, 2022
Service cost	$	—	$	—
Interest cost	224		322
Expected return on plan assets	(328)		(535)
Recognition of net loss	145		240
Net periodic pension expense	$	41	$	27

M. Segment Information

The Company's operations are classified into two business segments: Domestic and International. The Domestic business segment principally designs, manufactures, and installs scientific and technical furniture, including steel and wood laboratory cabinetry, fume hoods, flexible systems, worksurfaces, workstations, workbenches, and computer enclosures. The International business segment, which consists of the Company's foreign subsidiaries, provides products and services, including facility design, detailed engineering, construction, and project management from the planning stage through testing and commissioning of laboratories. Intersegment transactions are recorded at normal profit margins. All intercompany balances and transactions have been eliminated. Certain corporate expenses shown below have not been allocated to the business segments.

The following tables provide financial information by business segment and unallocated corporate expenses for the periods ended July 31, 2023 and 2022 (in thousands):

	Domestic Operations		International Operations		Corporate / Eliminations		Total
Three months ended July 31, 2023
Revenues from external customers	$	35,420	$	14,419	$	—	$	49,839
Intersegment revenues	51		661		(712)		—
Earnings (loss) before income taxes	3,623		793		(1,004)		3,412
Three months ended July 31, 2022
Revenues from external customers	$	37,468	$	12,655	$	—	$	50,123
Intersegment revenues	796		1,621		(2,417)		—
Earnings (loss) before income taxes	98		1,094		(1,532)		(340)

N. New Accounting Standards

In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments," which replaces the current incurred loss method used for determining credit losses on financial assets, including trade receivables, with an expected credit loss method. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2022. The Company adopted this standard in fiscal year 2024. The adoption of this standard did not have a significant impact on the Company's consolidated financial position or results of operations.

11

Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations

The Company's 2023 Annual Report to Stockholders on Form 10-K contains management's discussion and analysis of the Company's financial condition and results of operations as of and for the fiscal year ended April 30, 2023. The following discussion and analysis describes material changes in the Company's financial condition since April 30, 2023. The analysis of results of operations compares the three months ended July 31, 2023 with the comparable periods of the prior year.

Results of Operations

Sales for the quarter were $49,839,000, an decrease from sales of $50,123,000 in the comparable period of the prior year. Domestic sales for the quarter were $35,420,000, down 5.5% from sales of $37,468,000 in the comparable period of the prior year. The decrease in Domestic sales was predominantly related to the reduction of installation revenue related to the Company's decision to no longer sell directly to end users, which typically included installation services. International sales for the quarter were $14,419,000, up 13.9% from sales of $12,655,000 in the comparable period of the prior year. International sales increased when compared to the prior year period due to the delivery of several large projects that were booked in the prior fiscal year.

The Company's order backlog was $140.8 million at July 31, 2023, as compared to $174.0 million at July 31, 2022, and $147.9 million at April 30, 2023.

The gross profit margin for the three months ended July 31, 2023 was 23.9% of sales, as compared to 12.4% of sales in the comparable quarter of the prior year. The increase in gross profit margin percentage for the three months ended July 31, 2023 is primarily being generated from Domestic operations. The increase is driven by the pricing of new orders in response to higher raw material input costs when compared to the prior year period, during which 25% of Domestic revenue related to direct orders that, in aggregate, were delivered at a loss for the Company.

Operating expenses for the three months ended July 31, 2023 were $8,106,000, or 16.3% of sales, as compared to $6,592,000, or 13.2% of sales, in the comparable period of the prior year. The increase in operating expenses for the three months ended July 31, 2023 was primarily due to increases in SG&A wages, benefits, incentive and stock-based compensation of $823,000, bad debt expense primarily related to a single job dispute of $102,000, travel and entertainment expenses of $102,000, and increases in international operating expenses of $170,000.

Interest expense, net was $430,000 for the three months ended July 31, 2023, as compared to $384,000 for the comparable period of the prior year. The changes in interest expense were due to changes in the levels of bank borrowings and interest rates.

The effective income tax rate for the three months ended July 31, 2023 was 26.3%, as compared to (111.5)% for the three months ended July 31, 2022. Income tax expense of $897,000 and $379,000 was recorded for the three months ended July 31, 2023 and 2022, respectively. The effective tax rate for the three months ended July 31, 2023 reflects the impact of foreign operations which are taxed at different rates than the U.S. tax rate of 21%, combined with expected current year tax expense for the Company's domestic operations in excess of the change in domestic valuation allowance required for the fiscal year. The effective rate for the three months ended July 31, 2022 reflected the impact of the domestic valuation allowance against the deferred tax asset, which resulted in the elimination of any U.S. income tax benefit for the losses incurred during the period. See Note K, Income Taxes, of the Notes to Condensed Consolidated Financial Statements for additional information.

Non-controlling interests related to the Company's subsidiaries not 100% owned by the Company decreased net earnings by $41,000 for the three months ended July 31, 2023, compared to $28,000, for the comparable period of the prior year. The change in the net earnings attributable to the non-controlling interest in the current period was due to changes in earnings of the subsidiaries in the related period.

Net earnings was $2,474,000, or $0.86 per diluted share, for the three months ended July 31, 2023, compared to a net loss of $747,000, or $(0.27) per diluted share, in the prior year period.

Liquidity and Capital Resources

Our principal sources of liquidity have historically been funds generated from operating activities, supplemented as needed by borrowings under our Revolving Credit Facility. Additionally, certain machinery and equipment are financed by non-cancellable operating and financing leases. The Company believes that these sources will be sufficient to support ongoing business requirements in the current fiscal year, including capital expenditures.

The Company had working capital of $49,291,000 at July 31, 2023, compared to $47,867,000 at April 30, 2023. The ratio of current assets to current liabilities was 2.1-to-1.0 at July 31, 2023, compared to 2.2-to-1.0 at April 30, 2023.

12

The Company provided cash of $8,172,000 during the three months ended July 31, 2023, primarily from operations and decreases in accounts receivable of $3.5 million and increases in deferred revenue of $3.0 million, partially offset by increases in other current assets of $999,000 and accrued employee compensation and amounts withheld of $315,000. During the three months ended July 31, 2023, the Company used net cash of $1,654,000 in investing activities, all of which was used for capital expenditures. The Company's financing activities provided cash of $1,306,000 during the three months ended July 31, 2023, primarily from a net increase in borrowings under the Revolving Credit Facility.

Outlook

The Company's ability to predict future demand for its products continues to be limited given its role as subcontractor or supplier to dealers for subcontractors. Demand for the Company's products is also dependent upon the number of laboratory construction projects planned and/or current progress in projects already under construction. The Company's earnings are also impacted by fluctuations in prevailing pricing for projects in the laboratory construction marketplace and costs of raw materials, including steel, wood, and epoxy resin.

The Company is operating more efficiently than in the past due to its ability to focus solely on supporting its dealers and distribution channel partners domestically while continuing to provide turnkey solutions in the international markets it serves. The improved focus of the organization, combined with a strong global management team, a healthy backlog, improved manufacturing capabilities, and end-use markets that continue to prioritize investment in projects that require the products Kewaunee designs and manufactures positions the Company well.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Certain statements in this document constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). All statements other than statements of historical fact included in this Annual Report, including statements regarding the Company's future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "predict," "believe" and similar words, expressions and variations of these words and expressions are intended to identify forward-looking statements. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions, and other important factors that could significantly impact results or achievements expressed or implied by such forward-looking statements. Such factors, risks, uncertainties and assumptions include, but are not limited to: competitive and general economic conditions, including disruptions from government mandates, both domestically and internationally, as well as supplier constraints and other supply disruptions; changes in customer demands; technological changes in our operations or in our industry; dependence on customers’ required delivery schedules; risks related to fluctuations in the Company’s operating results from quarter to quarter; risks related to international operations, including foreign currency fluctuations; changes in the legal and regulatory environment; changes in raw materials and commodity costs; acts of terrorism, war, governmental action, natural disasters and other Force Majeure events. The cautionary statements made pursuant to the Reform Act herein and elsewhere by us should not be construed as exhaustive. We cannot always predict what factors would cause actual results to differ materially from those indicated by the forward-looking statements. Over time, our actual results, performance, or achievements will likely differ from the anticipated results, performance or achievements that are expressed or implied by our forward-looking statements, and such difference might be significant and harmful to our stockholders' interest. Many important factors that could cause such differences are described under the caption "Risk Factors" in Item 1A in the Company's 2023 Annual Report on Form 10-K, which you should review carefully. These forward-looking statements speak only as of the date of this document. The Company assumes no obligation, and expressly disclaims any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Item 3.    Quantitative and Qualitative Disclosures About Market Risk

There are no material changes to the disclosures made on this matter in the Company's Annual Report on Form 10-K for the fiscal year ended April 30, 2023.

Item 4.    Controls and Procedures

(a) Evaluation of disclosure controls and procedures

An evaluation was performed under the supervision and with the participation of the Company's management, including the Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of July 31, 2023. Based on that evaluation, the Company's management, including the CEO and CFO, concluded that, as of July 31, 2023, the Company's disclosure controls and procedures were adequate and effective and

13

designed to ensure that all material information required to be filed in this quarterly report is made known to them by others within the Company and its subsidiaries.

(b) Changes in internal controls

There was no significant change in the Company's internal control over financial reporting that occurred during the most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

14

PART II. OTHER INFORMATION

Item 1A.    Risk Factors

The business, financial condition and operating results of the Company can be affected by a number of factors, whether currently known or unknown, including but not limited to those described in Part I, Item 1A of the Company's 2023 Annual Report on Form 10-K under the heading "Risk Factors," any one or more of which could, directly or indirectly, cause the Company's actual financial condition and operating results to vary materially from its past, or from anticipated future, financial condition and operating results. Any of these factors, in whole or in part, could materially and adversely affect the Company's business, financial condition, operating results and stock price. There have been no material changes to the Company's risk factors from those set forth in the Company's Annual Report on Form 10-K for the year ended April 30, 2023 as filed with the SEC on June 30, 2023.

Item 5. Other Information

On August 31, 2023, the Board of Directors of Kewaunee Scientific Corporation (the "Company") adopted a new share repurchase program to take effect starting September 1, 2023. The Board of Directors authorized the repurchase of up to 100,000 shares of the Company's common stock under the new program, which does not have a specified expiration date.

The timing and amount of any repurchases under this program will be determined by the Company's management at its discretion based upon its ongoing assessments of the capital needs of the business, the market price of the Company's common stock and general market conditions. Share repurchases under this program may be made through a variety of methods including open-market purchases, block trades, exchange transactions or any combination thereof. The program does not obligate the Company to acquire any particular amount of its common stock, and the share repurchase program may be suspended or discontinued at any time at the Company's discretion.

Item 6.    Exhibits

10.1	Kewaunee Scientific Corporation 2023 Omnibus Incentive Plan, as amended	(1)
31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

(1) Filed as an exhibit to the Kewaunee Scientific Corporation Current Report on Form 8-K (Commission File No. 0-5286) filed with the Securities and Exchange Commission on August 25, 2023, and incorporated herein by reference.

15

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	KEWAUNEE SCIENTIFIC CORPORATION                              (Registrant)
Date: September 1, 2023	By	/s/ Donald T. Gardner III
		Donald T. Gardner III
		(As duly authorized officer and Vice President, Finance and Chief Financial Officer)

16

EX-31.1

Exhibit 31.1 CERTIFICATION I, Thomas D. Hull III, certify that: 1. I have reviewed this Quarterly Report on Form 10-Q of Kewaunee Scientific Corporation; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. /s/ Thomas D. Hull III Thomas D. Hull III President and Chief Executive Officer Date: September 1, 2023

EX-31.2

Exhibit 31.2 CERTIFICATION I, Donald T. Gardner III, certify that: 1. I have reviewed this Quarterly Report on Form 10-Q of Kewaunee Scientific Corporation; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. /s/ Donald T. Gardner III Donald T. Gardner III Vice President, Finance and Chief Financial Officer Date: September 1, 2023

EX-32.1

Exhibit 32.1 CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Quarterly Report on Form 10-Q of Kewaunee Scientific Corporation (the “Company”) for the period ended July 31, 2023, I, Thomas D. Hull III, President and Chief Executive Officer of the Company, hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge: (1) such Form 10-Q of the Company for the period ended July 31, 2023, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) the information contained in such Form 10-Q of the Company for the period ended July 31, 2023, fairly presents, in all material respects, the financial condition and results of operations of the Company. Date: September 1, 2023 /s/ Thomas D. Hull III Thomas D. Hull III President and Chief Executive Officer

EX-32.2

Exhibit 32.2 CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Quarterly Report on Form 10-Q of Kewaunee Scientific Corporation (the “Company”) for the period ended July 31, 2023, I, Donald T. Gardner III, Vice President, Finance and Chief Financial Officer of the Company, hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002, that to my knowledge: (1) such Form 10-Q of the Company for the period ended July 31, 2023, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) the information contained in such Form 10-Q of the Company for the period ended July 31, 2023, fairly presents, in all material respects, the financial condition and results of operations of the Company. Date: September 1, 2023 /s/ Donald T. Gardner III Donald T. Gardner III Vice President, Finance and Chief Financial Officer

XML

Cover Page - shares	3 Months Ended
	Jul. 31, 2023	Aug. 29, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 31, 2023
Document Transition Report	false
Entity File Number	0-5286
Entity Registrant Name	KEWAUNEE SCIENTIFIC CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	38-0715562
Entity Address, Address Line One	2700 West Front Street
Entity Address, City or Town	Statesville,
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	28677-2927
City Area Code	704
Local Phone Number	873-7202
Title of 12(b) Security	Common Stock, $2.50 par value
Trading Symbol	KEQU
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		2,904,094
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000055529
Current Fiscal Year End Date	--04-30

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Jul. 31, 2023	Jul. 31, 2022
Income Statement [Abstract]
Net sales	$ 49,839	$ 50,123
Cost of products sold	37,925	43,927
Gross profit	11,914	6,196
Operating expenses	8,106	6,592
Operating profit (loss)	3,808	(396)
Pension expense	(41)	(27)
Other income, net	75	467
Interest expense	(430)	(384)
Profit (loss) before income taxes	3,412	(340)
Income tax expense	897	379
Net earnings (loss)	2,515	(719)
Less: Net earnings attributable to the non-controlling interest	41	28
Net earnings (loss) attributable to Kewaunee Scientific Corporation	$ 2,474	$ (747)
Net earnings (loss) per share attributable to Kewaunee Scientific Corporation stockholders
Basic (in dollars per share)	$ 0.87	$ (0.27)
Diluted (in dollars per share)	$ 0.86	$ (0.27)
Weighted average number of common shares outstanding
Basic (in shares)	2,860	2,807
Diluted (in shares)	2,885	2,807

XML

Condensed Consolidated Statements of Comprehensive Earnings (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2023	Jul. 31, 2022
Statement of Comprehensive Income [Abstract]
Net earnings (loss)	$ 2,515	$ (719)
Other comprehensive loss, net of tax:
Foreign currency translation adjustments	(144)	(224)
Other comprehensive loss	(144)	(224)
Comprehensive earnings (loss), net of tax	2,371	(943)
Less: Comprehensive income attributable to the non-controlling interest	41	28
Comprehensive earnings (loss) attributable to Kewaunee Scientific Corporation	$ 2,330	$ (971)

XML

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning balance at Apr. 30, 2022	$ 35,694	$ 6,983	$ 4,483	$ (53)	$ 28,023	$ (3,742)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings (loss) attributable to Kewaunee Scientific Corporation	(747)				(747)
Other comprehensive loss	(224)					(224)
Stock-based compensation	(37)	97	(134)
Ending balance at Jul. 31, 2022	34,686	7,080	4,349	(53)	27,276	(3,966)
Beginning balance at Apr. 30, 2023	37,409	7,084	5,059	(53)	28,761	(3,442)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net earnings (loss) attributable to Kewaunee Scientific Corporation	2,474				2,474
Other comprehensive loss	(144)					(144)
Stock-based compensation	(309)	185	(494)
Ending balance at Jul. 31, 2023	$ 39,430	$ 7,269	$ 4,565	$ (53)	$ 31,235	$ (3,586)

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jul. 31, 2023	Apr. 30, 2023
Current Assets:
Cash and cash equivalents	$ 12,699	$ 8,078
Restricted cash	8,869	5,737
Receivables, less allowance; $560; $476, on each respective date	42,461	46,081
Inventories	22,126	21,889
Prepaid expenses and other current assets	7,365	6,135
Total Current Assets	93,520	87,920
Property, plant and equipment, at cost	63,023	61,368
Accumulated depreciation	(45,684)	(44,966)
Net Property, Plant and Equipment	17,339	16,402
Right of use assets	8,612	9,170
Other assets	5,347	5,406
Total Assets	124,818	118,898
Current Liabilities:
Short-term borrowings	5,054	3,587
Current portion of financing liability	659	642
Current portion of financing lease liabilities	86	85
Current portion of operating lease liabilities	1,912	1,967
Accounts payable	22,140	23,599
Employee compensation and amounts withheld	4,903	4,304
Deferred revenue	7,067	4,097
Other accrued expenses	2,408	1,772
Total Current Liabilities	44,229	40,053
Long-term portion of financing liability	27,958	28,132
Long-term portion of financing lease liabilities	143	148
Long-term portion of operating lease liabilities	6,645	7,136
Accrued pension and deferred compensation costs	3,861	3,546
Deferred income taxes	989	943
Other non-current liabilities	453	455
Total Liabilities	84,278	80,413
Commitments and Contingencies
Stockholders' Equity:
Common stock, $2.50 par value, Authorized – 5,000 shares; Issued – 2,907 shares; 2,833 shares; – Outstanding – 2,904 shares; 2,830 shares, on each respective date	7,269	7,084
Additional paid-in-capital	4,565	5,059
Retained earnings	31,235	28,761
Accumulated other comprehensive loss	(3,586)	(3,442)
Common stock in treasury, at cost, 3 shares, on each respective date	(53)	(53)
Total Kewaunee Scientific Corporation Stockholders' Equity	39,430	37,409
Non-controlling interest	1,110	1,076
Total Stockholders' Equity	40,540	38,485
Total Liabilities and Stockholders' Equity	$ 124,818	$ 118,898

XML

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jul. 31, 2023	Apr. 30, 2023
Current Assets:
Allowance for receivables	$ 560	$ 476
Stockholders' Equity:
Common stock, par value (in dollars per share)	$ 2.50	$ 2.50
Common stock, shares authorized (in shares)	5,000	5,000
Common stock, shares issued (in shares)	2,907	2,833
Common stock, shares outstanding (in shares)	2,904	2,830
Treasury stock, shares (in shares)	3	3

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2023	Jul. 31, 2022
Cash flows from operating activities:
Net earnings (loss)	$ 2,515	$ (719)
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Depreciation	718	725
Bad debt provision	125	23
Stock-based compensation expense	183	172
Deferred income taxes	46	23
Change in assets and liabilities:
Receivables	3,496	516
Inventories	(237)	(1,304)
Accounts payable and other accrued expenses	(226)	(2,117)
Deferred revenue	2,970	10,587
Other, net	(1,418)	(4,221)
Net cash provided by operating activities	8,172	3,685
Cash flows from investing activities:
Capital expenditures	(1,654)	(390)
Net cash used in investing activities	(1,654)	(390)
Cash flows from financing activities:
Proceeds from short-term borrowings	40,597	4,431
Repayments on short-term borrowings	(39,130)	(6,019)
Proceeds from sale-leaseback financing transaction	0	13,456
Payments on sale-leaseback financing transaction	(157)	(140)
Payments on long-term lease obligations	(4)	(58)
Net cash provided by financing activities	1,306	11,670
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(71)	(325)
Increase in cash, cash equivalents and restricted cash	7,753	14,640
Cash, cash equivalents and restricted cash, beginning of period	13,815	6,894
Cash, cash equivalents and restricted cash, end of period	$ 21,568	$ 21,534

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Financial Information

3 Months Ended

Jul. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Financial Information

Financial Information

The unaudited interim Condensed Consolidated Financial Statements of Kewaunee Scientific Corporation (the "Company") have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted, although the Company believes that the disclosures are adequate to make the information presented not misleading.

These interim Condensed Consolidated Financial Statements include all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of these financial statements and should be read in conjunction with the Consolidated Financial Statements and Notes included in the Company's 2023 Annual Report on Form 10-K. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year. The Condensed Consolidated Balance Sheet as of April 30, 2023 included in this interim period filing has been derived from the audited consolidated financial statements at that date, but does not include all of the information and related notes required by GAAP for complete financial statements.

The preparation of the interim Condensed Consolidated Financial Statements requires management to make certain estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates.

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Cash, Cash Equivalents and Restricted Cash

3 Months Ended

Jul. 31, 2023

Cash and Cash Equivalents [Abstract]

Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted Cash

Cash and cash equivalents consist of cash on hand and highly liquid investments with original maturities of three months or less. During the three months ended July 31, 2023 and twelve months ended April 30, 2023, the Company had cash deposits in excess of FDIC insured limits. The Company has not experienced any losses from such deposits. Restricted cash includes bank deposits of subsidiaries used for performance guarantees against customer orders and domestic bank deposits used as collateral for an outstanding letter of credit.

The Company includes restricted cash along with the cash balance for presentation in the Condensed Consolidated Statements of Cash Flows. The reconciliation between the Condensed Consolidated Balance Sheet and the Condensed Consolidated Statement of Cash Flows is as follows:

	July 31, 2023		April 30, 2023
Cash and cash equivalents	$	12,699	$	8,078
Restricted cash	8,869		5,737
Total cash, cash equivalents and restricted cash	$	21,568	$	13,815

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Revenue Recognition

3 Months Ended

Jul. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue RecognitionThe Company recognizes revenue when control of a good or service promised in a contract (i.e., performance obligation) is transferred to a customer. Control is obtained when a customer has the ability to direct the use of and obtain substantially all of the remaining benefits from that good or service. The majority of the Company's revenues are recognized over time as the customer receives control as the Company performs work under a contract. However, a portion of the Company's revenues are recognized at a point-in-time as control is transferred at a distinct point in time per the terms of a contract.

Disaggregated Revenue

A summary of net sales transferred to customers over time and at a point in time for the periods ended July 31, 2023 and July 31, 2022 is as follows (in thousands):

	Three Months Ended
	July 31, 2023						July 31, 2022
	Domestic		International		Total		Domestic		International		Total
Over Time	$	33,904	$	14,419	$	48,323	$	35,353	$	12,655	$	48,008
Point in Time	1,516		—		1,516		2,115		—		2,115
Total	$	35,420	$	14,419	$	49,839	$	37,468	$	12,655	$	50,123

Contract Balances

The closing balances of contract assets included $13,621,000 in accounts receivable and $928,000 in other assets at July 31, 2023. The opening balance of contract assets arising from contracts with customers included $13,459,000 in accounts receivable and $1,191,000 in other assets at April 30, 2023. The closing and opening balances of contract liabilities included in deferred revenue arising from contracts with customers were $7,067,000 at July 31, 2023 and $4,097,000 at April 30, 2023. The timing of revenue recognition, billings and cash collections results in accounts receivable, unbilled receivables, and deferred revenue which are disclosed in the Condensed Consolidated Balance Sheets and in the Notes to the Condensed Consolidated Financial Statements. In general, the Company receives payments from customers based on a billing schedule established in its contracts. Unbilled receivables represent amounts earned which have not yet been billed in accordance with contractually stated billing terms and are included in receivables on the Condensed Consolidated Balance Sheets. Receivables are recorded when the right to consideration becomes unconditional and the Company has a right to invoice the customer. Deferred revenue relates to payments received in advance of performance under the contract. Deferred revenue is recognized as revenue as (or when) the Company performs under the contract. Approximately 100% of the contract liability balances at April 30, 2023 and July 31, 2023 are expected to be recognized as revenue during the respective succeeding 12 months.

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Inventories

3 Months Ended

Jul. 31, 2023

Inventory Disclosure [Abstract]

Inventories

Inventories

The Company measures inventory using the first-in, first-out method at the lower of cost or net realizable value. Inventories consisted of the following (in thousands):

	July 31, 2023		April 30, 2023
Finished products	$	3,537	$	3,412
Work in process	2,138		2,380
Raw materials	16,451		16,097
Total	$	22,126	$	21,889

The Company's International subsidiaries' inventories were $2,902,000 at July 31, 2023 and $2,740,000 at April 30, 2023 and are included in the above tables.

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Fair Value of Financial Instruments

3 Months Ended

Jul. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The Company's financial instruments consist primarily of cash and equivalents, mutual funds, short-term borrowings, and the cash surrender value of life insurance policies. The carrying value of these assets and liabilities approximates their fair value. The following tables summarize the Company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of July 31, 2023 and April 30, 2023 (in thousands):

	July 31, 2023
Financial Assets	Level 1		Level 2		Total
Trading securities held in non-qualified compensation plans (1)	$	1,324	$	—	$	1,324
Cash surrender value of life insurance policies (1)	—		1,401		1,401
Total	$	1,324	$	1,401	$	2,725
Financial Liabilities
Non-qualified compensation plans (2)	$	—	$	3,185	$	3,185
Total	$	—	$	3,185	$	3,185

	April 30, 2023
Financial Assets	Level 1		Level 2		Total
Trading securities held in non-qualified compensation plans (1)	$	1,105	$	—	$	1,105
Cash surrender value of life insurance policies (1)	—		1,358		1,358
Total	$	1,105	$	1,358	$	2,463
Financial Liabilities
Non-qualified compensation plans (2)	$	—	$	2,910	$	2,910
Total	$	—	$	2,910	$	2,910

(1)The Company maintains two non-qualified compensation plans which include investment assets in a rabbi trust. These assets consist of marketable securities, which are valued using quoted market prices multiplied by the number of shares owned, and life insurance policies, which are valued at their cash surrender value.

(2)Plan liabilities are equal to the individual participants' account balances and other earned retirement benefits.

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Long-term Debt and Other Credit Arrangements

3 Months Ended

Jul. 31, 2023

Debt Disclosure [Abstract]

Long-term Debt and Other Credit Arrangements

Long-term Debt and Other Credit Arrangements

At April 30, 2023, advances of $3.5 million were outstanding under the Company's Revolving Credit Facility. Amounts available under the Revolving Credit Facility were $10.3 million at April 30, 2023. The borrowing rate under the Revolving Credit Facility was 9.02% as of April 30, 2023. The Company's International subsidiaries had a balance outstanding of $39,000 in short-term borrowings related to overdraft protection and short-term loan arrangements. At April 30, 2023, the Company was in compliance with all of the financial covenants under its Revolving Credit Facility.

At July 31, 2023, there were $5.0 million outstanding under the Revolving Credit Facility, with remaining borrowing capacity under the Revolving Credit Facility of $8.3 million. The borrowing rate under the Revolving Credit Facility was 9.33% as of July 31, 2023. In addition, the Company's International subsidiaries have a balance outstanding of $54,000 in short-term borrowings related to overdraft protection and short-term loan arrangements. As of July 31, 2023, the Company was in compliance with all of the financial covenants under its Revolving Credit Facility.

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Sale-Leaseback Financing Transaction

3 Months Ended

Jul. 31, 2023

Financing Liability [Abstract]

Sale-Leaseback Financing Transaction

Sale-Leaseback Financing Transaction

On December 22, 2021, the Company entered into an Agreement for Purchase and Sale of Real Property with CAI Investments Sub-Series 100 LLC, a Nevada limited liability company (the "Buyer"), for the Company’s headquarters and manufacturing facilities located at 2700 West Front Street in Statesville, North Carolina (the "Sale Agreement").

The Sale Agreement was finalized on March 24, 2022 and coincided with the Company and CAI Investments Medical Products I Master Lessee LLC ("Lessor") entering into a lease agreement. The lease arrangement is for a 20-year term, with four renewal options of five years each. Under the terms of the lease agreement, the Company’s initial basic rent is approximately $158,000 per month, with annual increases of approximately 2% each year of the initial term.

The Company accounted for the Sale-Leaseback Arrangement as a financing transaction as the lease agreement was determined to be a finance lease due to the significance of the present value of the lease payments, using a discount rate of 4.75% to reflect

the Company’s incremental borrowing rate, compared to the fair value of the leased property as of the lease commencement date. In measuring the lease payments for the present value analysis, the Company elected the practical expedient to combine the lease component (the leased facilities) with the non-lease component (property management provided by the Buyer/Lessor) into a single lease component.

The presence of a finance lease indicates that control of the property has not transferred to the Buyer/Lessor and, as such, the transaction was deemed a failed sale-leaseback and accounted for as a financing arrangement. As a result of this determination, the Company is viewed as having received the sale proceeds from the Buyer/Lessor in the form of a hypothetical loan collateralized by its leased facilities. The hypothetical loan is payable as principal and interest in the form of “lease payments” to the Buyer/Lessor. As such, the Company will not derecognize the property from its books for accounting purposes until the lease ends. No gain or loss was recognized under GAAP related to the Sale-Leaseback Arrangement.

As of July 31, 2023, the carrying value of the financing liability was $28,617,000, net of $692,000 in debt issuance costs, of which $659,000 was classified as current on the Consolidated Balance Sheet with $27,958,000 classified as long-term. As of April 30, 2023, the carrying value of the financing liability was $28,774,000, net of $708,000 in debt issuance costs, of which $642,000 was classified as current on the Consolidated Balance Sheet with $28,132,000 classified as long-term. The monthly lease payments are split between a reduction of principal and interest expense using the effective interest rate method. Interest expense associated with the financing arrangement was $325,000 and $332,000 for the three months ended July 31, 2023 and July 31, 2022, respectively.

The Company will depreciate the building down to zero over the 20-year assumed economic life of the Property so that at the end of the lease term, the remaining carrying amount of the financing liability will equal the carrying amount of the land of $41,000.

Remaining future cash payments related to the financing liability as of July 31, 2023 are as follows:

($ in thousands)
Remainder of 2024	$	1,449
2025	1,970
2026	2,009
2027	2,050
2028	2,090
Thereafter	33,867
Total Minimum Liability Payments	43,435
Imputed Interest	(14,818)
Total	$	28,617

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Leases

3 Months Ended

Jul. 31, 2023

Leases [Abstract]

Leases

Leases

The Company recognizes lease assets and lease liabilities reflecting the rights and obligations created by operating type leases for real estate and equipment in both the U.S. and internationally and financing leases for a truck and IT equipment in the U.S. At July 31, 2023 and April 30, 2023, right-of-use assets totaled $8,612,000 and $9,170,000, respectively. Operating cash paid to settle lease liabilities was $639,000 and $524,000 for the three months ended July 31, 2023 and July 31, 2022, respectively. The Company's leases have remaining lease terms of up to 9 years. In addition, some of the leases may include options to extend the leases for up to 5 years or options to terminate the leases within 1 year. Operating lease expenses were $867,000 for the three months ended July 31, 2023, inclusive of period cost for short-term leases, not included in lease liabilities, of $228,000. Operating lease expenses were $835,000 for the three months ended July 31, 2022, inclusive of period cost for short-term leases, not included in lease liabilities, of $311,000.

At July 31, 2023, the weighted average remaining lease term for the capitalized operating leases was 4.9 years and the weighted average discount rate was 5.0%. For the financing leases, the weighted average remaining lease term was 2.9 years and the weighted average discount rate was 6.7%. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of those lease payments. The Company uses the implicit rate when readily determinable.

Future minimum lease payments under non-cancelable leases as of July 31, 2023 were as follows:

	Operating		Financing
Remainder of fiscal 2024	$	1,730	$	83
2025	2,172		91
2026	1,917		71
2027	1,654		—
2028	1,127		—
Thereafter	1,377		—
Total Minimum Lease Payments	9,977		245
Imputed Interest	(1,421)		(16)
Total	$	8,556	$	229

Leases

Leases

The Company recognizes lease assets and lease liabilities reflecting the rights and obligations created by operating type leases for real estate and equipment in both the U.S. and internationally and financing leases for a truck and IT equipment in the U.S. At July 31, 2023 and April 30, 2023, right-of-use assets totaled $8,612,000 and $9,170,000, respectively. Operating cash paid to settle lease liabilities was $639,000 and $524,000 for the three months ended July 31, 2023 and July 31, 2022, respectively. The Company's leases have remaining lease terms of up to 9 years. In addition, some of the leases may include options to extend the leases for up to 5 years or options to terminate the leases within 1 year. Operating lease expenses were $867,000 for the three months ended July 31, 2023, inclusive of period cost for short-term leases, not included in lease liabilities, of $228,000. Operating lease expenses were $835,000 for the three months ended July 31, 2022, inclusive of period cost for short-term leases, not included in lease liabilities, of $311,000.

At July 31, 2023, the weighted average remaining lease term for the capitalized operating leases was 4.9 years and the weighted average discount rate was 5.0%. For the financing leases, the weighted average remaining lease term was 2.9 years and the weighted average discount rate was 6.7%. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of those lease payments. The Company uses the implicit rate when readily determinable.

Future minimum lease payments under non-cancelable leases as of July 31, 2023 were as follows:

	Operating		Financing
Remainder of fiscal 2024	$	1,730	$	83
2025	2,172		91
2026	1,917		71
2027	1,654		—
2028	1,127		—
Thereafter	1,377		—
Total Minimum Lease Payments	9,977		245
Imputed Interest	(1,421)		(16)
Total	$	8,556	$	229

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Earnings Per Share

3 Months Ended

Jul. 31, 2023

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic earnings per share is based on the weighted average number of common shares outstanding during the year. Diluted earnings per share reflects the assumed exercise of outstanding options and the conversion of restricted stock units ("RSUs") under the Company's various stock compensation plans, except when RSUs and options have an antidilutive effect. There were 33,700 and 104,141 antidilutive RSUs and options outstanding at July 31, 2023 and July 31, 2022, respectively. The following is a reconciliation of basic to diluted weighted average common shares outstanding (in thousands):

	Three Months Ended
	July 31, 2023	July 31, 2022
Basic	2,860	2,807
Dilutive effect of stock options and RSUs	25	—
Weighted average common shares outstanding - diluted	2,885	2,807

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Stock Options and Stock-based Compensation

3 Months Ended

Jul. 31, 2023

Equity [Abstract]

Stock Options and Stock-based Compensation

Stock Options and Stock-based Compensation

The Company recognizes compensation costs related to stock options and other stock awards granted by the Company as operating expenses over their vesting period.

In June 2023, the Company granted 87,220 RSUs under the 2017 Omnibus Incentive Plan ("2017 Plan"). These RSUs include both a service and a performance component, vesting over a three-year period. The recognized expense is based upon the vesting period for service criteria and estimated attainment of the performance criteria at the end of the three-year period, based on the ratio of cumulative days of service to total days over the three-year period. The Company recorded stock-based compensation expense during the three months ended July 31, 2023 of $173,000 with the remaining estimated stock-based compensation expense of $2,032,000 to be recorded over the remaining vesting periods. The Company recorded stock-based compensation expense during the three months ended July 31, 2022 of $131,000. Directors' fees paid with shares of common stock in lieu of cash in accordance with Director compensation guidelines were $10,000 and $41,000 for the three month periods ended July 31, 2023 and July 31, 2022, respectively, and were also included in the stock-based compensation on the Condensed Consolidated Statements of Cash Flows.

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Income Taxes

3 Months Ended

Jul. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

. Income Taxes

Income tax expense of $897,000 and $379,000 was recorded for the three months ended July 31, 2023 and July 31, 2022, respectively. The effective tax rate was 26.3% and (111.5)% for the three months ended July 31, 2023 and July 31, 2022, respectively. The effective tax rate for the three months ended July 31, 2023 reflects the impact of foreign operations which are taxed at different rates than the U.S. tax rate of 21%, combined with expected current year tax expense for the Company's domestic operations in excess of the change in domestic valuation allowance required for the fiscal year. The effective tax rate for the three months ended July 31, 2022 reflected the impact of foreign operations and the recording of a valuation allowance against the deferred tax asset which resulted in the elimination of any U.S. income tax benefit for pretax losses incurred during the period.

In August 2019, the Company revoked its indefinite reinvestment of foreign unremitted earnings position in compliance with ASC 740 "Income Taxes" and terminated its indefinite reinvestment of unremitted earnings assertion for the Singapore and

Kewaunee Labway India Pvt. Ltd. international subsidiaries. The Company has a deferred tax liability of $1,363,000 and $1,318,000 for the withholding tax related to Kewaunee Labway India Pvt. Ltd. as of July 31, 2023 and April 30, 2023, respectively.

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Defined Benefit Pension Plans

3 Months Ended

Jul. 31, 2023

Retirement Benefits [Abstract]

Defined Benefit Pension Plans

Defined Benefit Pension Plans

The Company has non-contributory defined benefit pension plans covering substantially all domestic salaried and hourly employees. These plans were amended as of April 30, 2005; no further benefits have been, or will be, earned under the plans, subsequent to the amendment date, and no additional participants will be added to the plans. There were no Company contributions paid to the plans for the three months ended July 31, 2023 and July 31, 2022. The Company assumed an expected long-term rate of return of 7.75% for the periods ended July 31, 2023 and July 31, 2022.

Pension expense consisted of the following (in thousands):

	Three Months Ended
	July 31, 2023		July 31, 2022
Service cost	$	—	$	—
Interest cost	224		322
Expected return on plan assets	(328)		(535)
Recognition of net loss	145		240
Net periodic pension expense	$	41	$	27

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Segment Information

3 Months Ended

Jul. 31, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company's operations are classified into two business segments: Domestic and International. The Domestic business segment principally designs, manufactures, and installs scientific and technical furniture, including steel and wood laboratory cabinetry, fume hoods, flexible systems, worksurfaces, workstations, workbenches, and computer enclosures. The International business segment, which consists of the Company's foreign subsidiaries, provides products and services, including facility design, detailed engineering, construction, and project management from the planning stage through testing and commissioning of laboratories. Intersegment transactions are recorded at normal profit margins. All intercompany balances and transactions have been eliminated. Certain corporate expenses shown below have not been allocated to the business segments.

The following tables provide financial information by business segment and unallocated corporate expenses for the periods ended July 31, 2023 and 2022 (in thousands):

	Domestic Operations		International Operations		Corporate / Eliminations		Total
Three months ended July 31, 2023
Revenues from external customers	$	35,420	$	14,419	$	—	$	49,839
Intersegment revenues	51		661		(712)		—
Earnings (loss) before income taxes	3,623		793		(1,004)		3,412
Three months ended July 31, 2022
Revenues from external customers	$	37,468	$	12,655	$	—	$	50,123
Intersegment revenues	796		1,621		(2,417)		—
Earnings (loss) before income taxes	98		1,094		(1,532)		(340)

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New Accounting Standards	3 Months Ended
	Jul. 31, 2023
Accounting Policies [Abstract]
New Accounting Standards	New Accounting StandardsIn June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments," which replaces the current incurred loss method used for determining credit losses on financial assets, including trade receivables, with an expected credit loss method. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2022. The Company adopted this standard in fiscal year 2024. The adoption of this standard did not have a significant impact on the Company's consolidated financial position or results of operations.

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New Accounting Standards (Policies)	3 Months Ended
	Jul. 31, 2023
Accounting Policies [Abstract]
New Accounting Standards	In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments," which replaces the current incurred loss method used for determining credit losses on financial assets, including trade receivables, with an expected credit loss method. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2022. The Company adopted this standard in fiscal year 2024. The adoption of this standard did not have a significant impact on the Company's consolidated financial position or results of operations.

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Cash, Cash Equivalents and Restricted Cash (Tables)

3 Months Ended

Jul. 31, 2023

Cash and Cash Equivalents [Abstract]

Schedule of Cash, Cash Equivalents, and Restricted Cash

The reconciliation between the Condensed Consolidated Balance Sheet and the Condensed Consolidated Statement of Cash Flows is as follows:

	July 31, 2023		April 30, 2023
Cash and cash equivalents	$	12,699	$	8,078
Restricted cash	8,869		5,737
Total cash, cash equivalents and restricted cash	$	21,568	$	13,815

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Revenue Recognition (Tables)

3 Months Ended

Jul. 31, 2023

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

A summary of net sales transferred to customers over time and at a point in time for the periods ended July 31, 2023 and July 31, 2022 is as follows (in thousands):

	Three Months Ended
	July 31, 2023						July 31, 2022
	Domestic		International		Total		Domestic		International		Total
Over Time	$	33,904	$	14,419	$	48,323	$	35,353	$	12,655	$	48,008
Point in Time	1,516		—		1,516		2,115		—		2,115
Total	$	35,420	$	14,419	$	49,839	$	37,468	$	12,655	$	50,123

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Inventories (Tables)

3 Months Ended

Jul. 31, 2023

Inventory Disclosure [Abstract]

Summary of Inventories

Inventories consisted of the following (in thousands):

	July 31, 2023		April 30, 2023
Finished products	$	3,537	$	3,412
Work in process	2,138		2,380
Raw materials	16,451		16,097
Total	$	22,126	$	21,889

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Fair Value of Financial Instruments (Tables)

3 Months Ended

Jul. 31, 2023

Fair Value Disclosures [Abstract]

Summary of Fair Value Hierarchy for Financial Assets and Liabilities Measured Recurring Basis

The following tables summarize the Company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of July 31, 2023 and April 30, 2023 (in thousands):

	July 31, 2023
Financial Assets	Level 1		Level 2		Total
Trading securities held in non-qualified compensation plans (1)	$	1,324	$	—	$	1,324
Cash surrender value of life insurance policies (1)	—		1,401		1,401
Total	$	1,324	$	1,401	$	2,725
Financial Liabilities
Non-qualified compensation plans (2)	$	—	$	3,185	$	3,185
Total	$	—	$	3,185	$	3,185

	April 30, 2023
Financial Assets	Level 1		Level 2		Total
Trading securities held in non-qualified compensation plans (1)	$	1,105	$	—	$	1,105
Cash surrender value of life insurance policies (1)	—		1,358		1,358
Total	$	1,105	$	1,358	$	2,463
Financial Liabilities
Non-qualified compensation plans (2)	$	—	$	2,910	$	2,910
Total	$	—	$	2,910	$	2,910

(1)The Company maintains two non-qualified compensation plans which include investment assets in a rabbi trust. These assets consist of marketable securities, which are valued using quoted market prices multiplied by the number of shares owned, and life insurance policies, which are valued at their cash surrender value.

(2)Plan liabilities are equal to the individual participants' account balances and other earned retirement benefits.

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Sale-Leaseback Financing Transaction (Tables)

3 Months Ended

Jul. 31, 2023

Financing Liability [Abstract]

Schedule of Remaining Future Cash Payments for Financing Liability

Remaining future cash payments related to the financing liability as of July 31, 2023 are as follows:

($ in thousands)
Remainder of 2024	$	1,449
2025	1,970
2026	2,009
2027	2,050
2028	2,090
Thereafter	33,867
Total Minimum Liability Payments	43,435
Imputed Interest	(14,818)
Total	$	28,617

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Leases (Tables)

3 Months Ended

Jul. 31, 2023

Leases [Abstract]

Schedule of Operating Lease Maturity

Future minimum lease payments under non-cancelable leases as of July 31, 2023 were as follows:

	Operating		Financing
Remainder of fiscal 2024	$	1,730	$	83
2025	2,172		91
2026	1,917		71
2027	1,654		—
2028	1,127		—
Thereafter	1,377		—
Total Minimum Lease Payments	9,977		245
Imputed Interest	(1,421)		(16)
Total	$	8,556	$	229

Schedule of Finance Lease Maturity

Future minimum lease payments under non-cancelable leases as of July 31, 2023 were as follows:

	Operating		Financing
Remainder of fiscal 2024	$	1,730	$	83
2025	2,172		91
2026	1,917		71
2027	1,654		—
2028	1,127		—
Thereafter	1,377		—
Total Minimum Lease Payments	9,977		245
Imputed Interest	(1,421)		(16)
Total	$	8,556	$	229

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Earnings Per Share (Tables)

3 Months Ended

Jul. 31, 2023

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following is a reconciliation of basic to diluted weighted average common shares outstanding (in thousands):

	Three Months Ended
	July 31, 2023	July 31, 2022
Basic	2,860	2,807
Dilutive effect of stock options and RSUs	25	—
Weighted average common shares outstanding - diluted	2,885	2,807

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Defined Benefit Pension Plans (Tables)

3 Months Ended

Jul. 31, 2023

Retirement Benefits [Abstract]

Pension Expenses

Pension expense consisted of the following (in thousands):

	Three Months Ended
	July 31, 2023		July 31, 2022
Service cost	$	—	$	—
Interest cost	224		322
Expected return on plan assets	(328)		(535)
Recognition of net loss	145		240
Net periodic pension expense	$	41	$	27

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Segment Information (Tables)

3 Months Ended

Jul. 31, 2023

Segment Reporting [Abstract]

Segment Information

The following tables provide financial information by business segment and unallocated corporate expenses for the periods ended July 31, 2023 and 2022 (in thousands):

	Domestic Operations		International Operations		Corporate / Eliminations		Total
Three months ended July 31, 2023
Revenues from external customers	$	35,420	$	14,419	$	—	$	49,839
Intersegment revenues	51		661		(712)		—
Earnings (loss) before income taxes	3,623		793		(1,004)		3,412
Three months ended July 31, 2022
Revenues from external customers	$	37,468	$	12,655	$	—	$	50,123
Intersegment revenues	796		1,621		(2,417)		—
Earnings (loss) before income taxes	98		1,094		(1,532)		(340)

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Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Jul. 31, 2023	Apr. 30, 2023	Jul. 31, 2022	Apr. 30, 2022
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	$ 12,699	$ 8,078
Restricted cash	8,869	5,737
Total cash, cash equivalents and restricted cash	$ 21,568	$ 13,815	$ 21,534	$ 6,894

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Revenue Recognition - Summary of Net Sales Transferred to Customers at a Point in Time and Over Time (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2023	Jul. 31, 2022
Disaggregation of Revenue [Line Items]
Net sales transferred to customers	$ 49,839	$ 50,123
Over Time
Disaggregation of Revenue [Line Items]
Net sales transferred to customers	48,323	48,008
Point in Time
Disaggregation of Revenue [Line Items]
Net sales transferred to customers	1,516	2,115
Domestic
Disaggregation of Revenue [Line Items]
Net sales transferred to customers	35,420	37,468
Domestic | Over Time
Disaggregation of Revenue [Line Items]
Net sales transferred to customers	33,904	35,353
Domestic | Point in Time
Disaggregation of Revenue [Line Items]
Net sales transferred to customers	1,516	2,115
International
Disaggregation of Revenue [Line Items]
Net sales transferred to customers	14,419	12,655
International | Over Time
Disaggregation of Revenue [Line Items]
Net sales transferred to customers	14,419	12,655
International | Point in Time
Disaggregation of Revenue [Line Items]
Net sales transferred to customers	$ 0	$ 0

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Revenue Recognition - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jul. 31, 2023	Apr. 30, 2023
Disaggregation of Revenue [Line Items]
Contract liabilities	$ 7,067	$ 4,097
Contract liability recognized as revenue percentage	100.00%	100.00%
Accounts receivable
Disaggregation of Revenue [Line Items]
Contract assets	$ 13,621	$ 13,459
Other assets
Disaggregation of Revenue [Line Items]
Contract assets	$ 928	$ 1,191

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Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands	Jul. 31, 2023	Apr. 30, 2023
Inventory Disclosure [Abstract]
Finished products	$ 3,537	$ 3,412
Work in process	2,138	2,380
Raw materials	16,451	16,097
Total	$ 22,126	$ 21,889

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Inventories - Additional Information (Detail) - USD ($) $ in Thousands	Jul. 31, 2023	Apr. 30, 2023
Inventory [Line Items]
Inventories	$ 22,126	$ 21,889
International Subsidiaries
Inventory [Line Items]
Inventories	$ 2,902	$ 2,740

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Fair Value of Financial Instruments - Summary of Fair Value Hierarchy for Financial Assets and Liabilities Measured Recurring Basis (Detail) $ in Thousands	Jul. 31, 2023 USD ($) CompensationPlan	Apr. 30, 2023 USD ($) CompensationPlan
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Assets	$ 2,725	$ 2,463
Financial Liabilities	$ 3,185	$ 2,910
Number of non-qualified compensation plans maintained | CompensationPlan	2	2
Non-qualified compensation plans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Liabilities	$ 3,185	$ 2,910
Trading securities held in non-qualified compensation plans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Assets	1,324	1,105
Cash surrender value of life insurance policies
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Assets	1,401	1,358
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Assets	1,324	1,105
Financial Liabilities	0	0
Level 1 | Non-qualified compensation plans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Liabilities	0	0
Level 1 | Trading securities held in non-qualified compensation plans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Assets	1,324	1,105
Level 1 | Cash surrender value of life insurance policies
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Assets	0	0
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Assets	1,401	1,358
Financial Liabilities	3,185	2,910
Level 2 | Non-qualified compensation plans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Liabilities	3,185	2,910
Level 2 | Trading securities held in non-qualified compensation plans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Assets	0	0
Level 2 | Cash surrender value of life insurance policies
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial Assets	$ 1,401	$ 1,358

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Long-term Debt and Other Credit Arrangements (Details) - USD ($) $ in Thousands	Jul. 31, 2023	Apr. 30, 2023
International Subsidiaries
Debt Instrument [Line Items]
Short-term borrowings	$ 54	$ 39
Revolving Credit Facility | Credit Agreement, Mid Cap Funding IV Trust | Line of Credit
Debt Instrument [Line Items]
Outstanding advances under the long-term debt	5,000	3,500
Remaining borrowing capacity	$ 8,300	$ 10,300
Interest rate at period end	9.33%	9.02%

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Sale-Leaseback Financing Transaction - Narrative (Details) $ in Thousands	3 Months Ended
	Jul. 31, 2023 USD ($) renewalOption	Jul. 31, 2022 USD ($)	Apr. 30, 2023 USD ($)
Financing Liability [Abstract]
Term of agreement	20 years
Number of renewal options | renewalOption	4
Renewal term	5 years
Initial basic monthly rent	$ 158
Annual rental increase, as a percent	2.00%
Discount rate	4.75%
Gain (loss) on sale leaseback agreement	$ 0
Financing liability	28,617		$ 28,774
Debt issuance costs on financing liability	692		708
Current portion of financing liability	659		642
Long-term portion of financing liability	27,958		28,132
Interest expense on financing liability	325	$ 332
Financing Liability [Line Items]
Property, plant and equipment, at cost	$ 63,023		$ 61,368
Building
Financing Liability [Line Items]
Useful Life (in years)	20 years
Land
Financing Liability [Line Items]
Property, plant and equipment, at cost	$ 41

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Sale-Leaseback Financing Transaction - Remaining Future Cash Payments (Details) - USD ($) $ in Thousands	Jul. 31, 2023	Apr. 30, 2023
Financing Liability [Abstract]
Remainder of 2024	$ 1,449
2024	1,970
2025	2,009
2026	2,050
2027	2,090
Thereafter	33,867
Total Minimum Liability Payments	43,435
Imputed Interest	(14,818)
Total	$ 28,617	$ 28,774

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Leases - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2023	Jul. 31, 2022	Apr. 30, 2023
Leases [Abstract]
Right of use assets	$ 8,612		$ 9,170
Operating cash paid to settle lease liabilities	$ 639	$ 524
Remaining lease term (in years)	9 years
Option to extend, term (in years)	5 years
Option to terminate, term (in years)	1 year
Operating lease, expense	$ 867	835
Operating lease, short term, expense	$ 228	$ 311
Weighted average remaining lease term, operating lease (in years)	4 years 10 months 24 days
Weighted average discount rate, operating lease	5.00%
Weighted average remaining lease term, finance lease (in years)	2 years 10 months 24 days
Weighted average discount rate, finance lease	6.70%

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Leases - Schedule of Operating and Finance Lease Maturity (Details) $ in Thousands	Jul. 31, 2023 USD ($)
Operating
Remainder of fiscal 2024	$ 1,730
2025	2,172
2026	1,917
2027	1,654
2028	1,127
Thereafter	1,377
Total Minimum Lease Payments	9,977
Imputed Interest	(1,421)
Total	8,556
Financing
Remainder of fiscal 2024	83
2025	91
2026	71
2027	0
2028	0
Thereafter	0
Total Minimum Lease Payments	245
Imputed Interest	(16)
Total	$ 229

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Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended
	Jul. 31, 2023	Jul. 31, 2022
Earnings Per Share [Abstract]
Anti-dilutive options exclude from computation of earning per share (in shares)	33,700	104,141

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Earnings Per Share Schedule of Earnings Per Common Share (Details) - shares shares in Thousands	3 Months Ended
	Jul. 31, 2023	Jul. 31, 2022
Weighted average number of common shares outstanding
Basic (in shares)	2,860	2,807
Dilutive effect of stock options and RSUs (in shares)	25	0
Weighted average common shares outstanding - diluted (in shares)	2,885	2,807

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Stock Options and Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Jun. 30, 2023	Jul. 31, 2023	Jul. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Directors' fees paid with shares of common stock in lieu of cash in accordance with Director compensation guidelines		$ 10	$ 41
2017 Plan | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		173	$ 131
Remaining estimated compensation expense		$ 2,032
2017 Plan | Restricted Stock Units (RSUs) | Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted (in shares)	87,220
Vesting period (in years)	3 years

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Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2023	Jul. 31, 2022	Apr. 30, 2023
Income Tax Disclosure [Abstract]
Income tax expense	$ 897	$ 379
Effective income tax rate	26.30%	(111.50%)
Deferred tax liability, global tax exposure for unremitted earnings of international subsidiaries	$ 1,363		$ 1,318

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Defined Benefit Pension Plans - Additional Information (Detail) - USD ($)	3 Months Ended
	Jul. 31, 2023	Jul. 31, 2022
Retirement Benefits [Abstract]
Employer contributions	$ 0	$ 0
Assumed as expected long-term rate of return (as a percent)	7.75%	7.75%

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Defined Benefit Pension Plans - Pension Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2023	Jul. 31, 2022
Retirement Benefits [Abstract]
Service cost	$ 0	$ 0
Interest cost	224	322
Expected return on plan assets	(328)	(535)
Recognition of net loss	145	240
Net periodic pension expense	$ 41	$ 27

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Segment Information - Additional Information (Detail)	3 Months Ended
	Jul. 31, 2023 Segment
Segment Reporting [Abstract]
Number of business segments	2

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Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2023	Jul. 31, 2022
Segment Reporting Information [Line Items]
Net sales	$ 49,839	$ 50,123
Intersegment revenues	0	0
Earnings (loss) before income taxes	3,412	(340)
Corporate / Eliminations
Segment Reporting Information [Line Items]
Net sales	0	0
Intersegment revenues	(712)	(2,417)
Earnings (loss) before income taxes	(1,004)	(1,532)
Domestic Operations | Operating Segments
Segment Reporting Information [Line Items]
Net sales	35,420	37,468
Intersegment revenues	51	796
Earnings (loss) before income taxes	3,623	98
International Operations | Operating Segments
Segment Reporting Information [Line Items]
Net sales	14,419	12,655
Intersegment revenues	661	1,621
Earnings (loss) before income taxes	$ 793	$ 1,094