UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
| |||||
FORM 8-K
| |||||
CURRENT REPORT | |||||
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
| |||||
Date of Report (Date of earliest event reported) | June 26, 2018 | ||||
| |||||
Kewaunee Scientific Corporation
(Exact name of registrant as specified in its charter) | |||||
Delaware | 0-5286 | 38-0715562 | |||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) | |||
2700 West Front Street Statesville, North Carolina (Address of principal executive offices)
|
28677 (Zip Code)
| ||||
Registrant’s telephone number, including area code 704-873-7202 | |||||
N/A (Former name or former address, if changed since last report.) | |||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | |||||
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | ||
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. | ¨ | |
Item 2.02 | Results of Operations and Financial Condition |
On June 26, 2018, Kewaunee Scientific Corporation issued a press release announcing its financial results for the fourth quarter and year ended April 30, 2018. A copy of the Press Release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01 | Financial Statements and Exhibits |
(d) Exhibits:
Exhibit No. | ||
99.1 | Press Release of Kewaunee Scientific Corporation dated June 26, 2018 |
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
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 hereunto duly authorized.
(Registrant) | |||
Kewaunee Scientific Corporation | |||
Date: June 26, 2018 | /s/ Thomas D. Hull III | ||
Thomas D. Hull III Vice President, Finance | |||
Chief Financial Officer |
Kewaunee Scientific Reports Results for Fiscal Year and Fourth Quarter
STATESVILLE, N.C., June 26, 2018 /PRNewswire/ -- Kewaunee Scientific Corporation (NASDAQ: KEQU) today announced results for its fourth quarter and its fiscal year ended April 30, 2018.
Full Year, Fiscal Year 2018 Results:
Fourth Quarter, Fiscal Year 2018 Results:
Record sales of $158,050,000 were delivered during fiscal year 2018, an increase of 14.1% from sales of $138,558,000 in the prior year. Domestic sales for the fiscal year were $114,594,000, an increase of 1.3% from sales of $113,081,000 in the prior year. International sales for the fiscal year were $43,456,000, an increase of 70.6% from sales of $25,477,000 in the prior year. Sales for the fiscal year ended April 30, 2018 reflect continued strength for Kewaunee's laboratory, healthcare, and technical furniture products in the US, Middle East, Indian, and Asian markets.
Pre-tax earnings for the fiscal year were $9,480,000, an increase of 40.5% compared to $6,746,000 for the prior period. Net earnings increased 14.9% for the fiscal year to $5,188,000, or $1.87 per diluted share, as compared to net earnings of $4,515,000, or $1.66 per diluted share, for the year ended April 30, 2017. These results reflect the aforementioned unfavorable impact of $1,329,000, or $0.48 per diluted share, of additional tax expense recorded in the fiscal year.
The order backlog was $116.3 million at April 30, 2018, a record, up from $116.1 million at January 31, 2018, and $113.5 million at April 30, 2017. Incoming orders continued to be strong in all of our key markets, increasing the order backlog to record levels.
Unrestricted cash on hand at April 30, 2018 was $9,716,000, as compared to $12,506,000 at April 30, 2017, and working capital was $35,942,000, as compared to $32,885,000. Short term debt was $5,052,000 at April 30, 2018, as compared to $4,509,000 at April 30, 2017, and total debt was $6,316,000 as compared to $6,940,000. The debt-to-equity ratio at April 30, 2018 was .10-to-1, as compared to .20-to-1 at April 30, 2017.
"The fourth quarter was an excellent quarter for the Company," said David M. Rausch, Kewaunee's President and Chief Executive Officer. "Our sales and pre-tax profit performance for the quarter were very strong in a very competitive laboratory furniture marketplace."
"Fiscal year 2018 was another year of growth for Kewaunee as we achieved record sales and pre-tax earnings for the fourth year in a row," said David M. Rausch. "Kewaunee's world class global sales network continues to focus on providing the highest quality products and services to our customers."
"Coming off four strong years, I remain optimistic about Kewaunee's future and anticipate sales and earnings growth in fiscal year 2019. The pace of activity, both domestically and internationally, remains solid as customers are investing in projects that require the products and services we provide."
About Kewaunee Scientific
Founded in 1906, Kewaunee Scientific Corporation is a recognized global leader in the design, manufacture, and installation of laboratory, healthcare, and technical furniture products. Products include steel, wood, and laminate casework, fume hoods, adaptable modular systems, moveable workstations, stand-alone benches, biological safety cabinets, and epoxy resin worksurfaces and sinks.
The Company's corporate headquarters are located in Statesville, North Carolina. Direct sales offices are located in the United States, India, Singapore, and China. Three manufacturing facilities are located in Statesville serving the domestic and international markets, and one manufacturing facility is located in Bangalore, India serving the local and Asian markets. The Company's China headquarters and sales office are located in Shanghai, China. Kewaunee Scientific's website is located at http://www.kewaunee.com.
This press release contains statements that the Company believes to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, 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. All forward-looking statements are subject to important factors, risks, uncertainties and assumptions, including industry and economic conditions that could cause actual results to differ materially from those described in the forward-looking statements. Additional information concerning these factors is contained in the Company's filings with the Securities and Exchange Commission. 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.
Contact: Thomas D. Hull III
704/871-3290
Kewaunee Scientific Corporation | |||||||||
Consolidated Statements of Operations | |||||||||
(in thousands, except per share data) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| Three months ended |
| Years ended | ||||
|
|
| April 30, |
| April 30, | ||||
|
|
| 2018 |
| 2017 |
| 2018 |
| 2017 |
|
|
| (Unaudited) |
| (Unaudited) |
|
| ||
Net sales |
|
| $ 44,508 |
| $ 34,579 |
| $ 158,050 |
| $ 138,558 |
Cost of products sold |
| 35,574 |
| 27,247 |
| 126,030 |
| 111,951 | |
Gross profit |
|
| 8,934 |
| 7,332 |
| 32,020 |
| 26,607 |
Operating expenses |
| 6,574 |
| 5,581 |
| 22,934 |
| 20,065 | |
Operating earnings |
| 2,360 |
| 1,751 |
| 9,086 |
| 6,542 | |
Other income |
| 169 |
| 138 |
| 693 |
| 496 | |
Interest expense |
| (73) |
| (63) |
| (299) |
| (292) | |
Earnings before income taxes |
| 2,456 |
| 1,826 |
| 9,480 |
| 6,746 | |
Income tax expense |
| 966 |
| 431 |
| 4,115 |
| 2,126 | |
Net earnings |
|
| 1,490 |
| 1,395 |
| 5,365 |
| 4,620 |
Less: net earnings attributable to |
|
|
|
|
|
|
|
| |
the noncontrolling interest |
| 57 |
| 7 |
| 177 |
| 105 | |
Net earnings attributable to |
|
|
|
|
|
|
|
| |
Kewaunee Scientific Corporation |
| $ 1,433 |
| $ 1,388 |
| $ 5,188 |
| $ 4,515 | |
|
|
|
|
|
|
|
|
|
|
Net earnings per share attributable to |
|
|
|
|
|
|
|
| |
Kewaunee Scientific Corporation stockholders |
|
|
|
|
|
| |||
Basic |
|
| $ 0.53 |
| $ 0.51 |
| $ 1.91 |
| $ 1.67 |
Diluted |
|
| $ 0.52 |
| $ 0.51 |
| $ 1.87 |
| $ 1.66 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of common |
|
|
|
|
|
|
|
| |
shares outstanding |
|
|
|
|
|
|
|
| |
Basic |
|
| 2,728 |
| 2,712 |
| 2,720 |
| 2,705 |
Diluted |
|
| 2,795 |
| 2,734 |
| 2,777 |
| 2,726 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Kewaunee Scientific Corporation |
|
| ||||||
| Condensed Consolidated Balance Sheets |
|
| ||||||
| (in thousands) |
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| April 30, |
| April 30, |
|
|
|
|
|
|
| 2018 |
| 2017 |
|
|
Assets |
|
|
|
| (Unaudited) |
|
|
|
|
Cash and cash equivalents |
|
|
| $ 9,716 |
| $ 12,506 |
|
| |
Restricted Cash |
|
|
| 1,242 |
| 1,435 |
|
| |
Receivables, less allowances |
|
|
| 32,660 |
| 29,889 |
|
| |
Inventories |
|
|
|
| 17,662 |
| 14,935 |
|
|
Prepaid expenses and other current assets |
|
|
| 2,224 |
| 1,047 |
|
| |
Total Current Assets |
|
|
| 63,504 |
| 59,812 |
|
| |
Net property, plant and equipment |
|
|
| 14,661 |
| 14,027 |
|
| |
Other assets |
|
|
|
| 6,193 |
| 7,077 |
|
|
Total Assets |
|
|
|
| $ 84,358 |
| $ 80,916 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
| |
Short-term borrowings and interest rate swaps |
|
| $ 3,885 |
| $ 3,591 |
|
| ||
Current portion of long-term debt |
|
|
| 1,167 |
| 918 |
|
| |
Accounts payable |
|
|
| 14,754 |
| 11,995 |
|
| |
Other current liabilities |
|
|
| 7,756 |
| 10,423 |
|
| |
Total Current Liabilities |
|
|
| 27,562 |
| 26,927 |
|
| |
Other non-current liabilities |
|
|
| 9,275 |
| 10,732 |
|
| |
Total Liabilities |
|
|
| 36,837 |
| 37,659 |
|
| |
Noncontrolling interest |
|
|
| 462 |
| 374 |
|
| |
Kewaunee Scientific Corporation equity |
|
|
| 47,059 |
| 42,883 |
|
| |
Total Equity |
|
|
| 47,521 |
| 43,257 |
|
| |
Total Liabilities and Equity |
|
|
| $ 84,358 |
| $ 80,916 |
|
!XQH6T7HS;VJM!Q,A,C6Y5!$A4T(RI';U;@^.V3V R_I19]Y4ZZ*'(55JHTM_KY9;E5=<2%8*>*2<$84>!B91P$5\V3=IV3
MU;N#]BM4MQZEUP2RYA+DJLORCR$8WCO$!39\88"L@YX*SPBP<$#$-R&S%I3)
MZDMWPQ39\5-JJFJ(2J?66 \5ES'5 Z6$ K5YRLJ)\\;-'Y96AQI+C9!0M(*2.T'E'Z@BLO2F4.7G=#*772@>$
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M;V)@+<0\L?QJ4W+R%/?GIMY#,O+-*=>=6<);0D$J43W F*4W/M*:JZNZI-6
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M>4Y:]W,S;5NS\SNSS2VE=;2IH>*7>KYXP E:<9X C)T7/$8,19KSL_Z=ZK
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MA)2J;FGG"Y,3:D@@%Q9YXR< 9. ,P%&=C6\)C17:4F*%>S2J4Q/@TBJI?X
M"4>"@IIQ1Y;F]PWN6ZYO43[KM>FHM(M^AU/2:S)2\DU)
M2EOGPD(0VR4!3;B5;P!"L^7A 5ZOS:8U&J6TY*Z?4Q