Core Viewpoint - Kewaunee Scientific Corporation has demonstrated resilience in its domestic operations despite facing challenges in international markets, with a strong order backlog indicating potential for future growth [12][16]. Financial Performance - The company reported second-quarter fiscal 2025 earnings per share of $1.01, an 8.6% increase from 93 cents in the same quarter last year [2]. - Net sales for the second quarter were $47.8 million, reflecting a 5.3% decline compared to $50.4 million in the prior year [2]. - Gross profit increased to $14 million from $13.5 million, resulting in a gross margin improvement to 29.2% from 26.7% [7]. Segment Analysis - Domestic sales grew 6.5% year over year to $36.41 million, with net earnings surging 48.2% to $4.52 million [4]. - International revenues fell sharply to $11.36 million, down from $16.25 million, primarily due to delays in customer construction sites in India [5]. - The corporate segment reported a pre-tax net loss of $2.44 million, widening from a $1.24 million loss in the previous year [6]. Key Business Metrics - Operating profit for the quarter was $4.4 million, a 13.2% decline from $5.1 million in the prior year [7]. - Pre-tax earnings decreased by 18.9% to $3.9 million, while EBITDA declined 13.8% to $4.9 million [8]. - Adjusted EBITDA reached $6.4 million, up 13.4% from $5.7 million in the prior year [8]. Cash and Debt Position - The company ended the quarter with $29.7 million in cash, an increase from $25.9 million [9]. - Short-term debt was reduced to $805,000 from $3.1 million, indicating improved liquidity [9]. - Long-term debt stood at $28 million, slightly down from $28.5 million, with a debt-to-equity ratio improving to 0.59-to-1 from 0.70-to-1 [10][11]. Management Commentary - The CEO highlighted strong domestic performance and a growing backlog, attributing this to market vitality and effective partnerships [12]. - Challenges in international operations were acknowledged, particularly in India, but optimism about long-term global opportunities was expressed [12]. Order Backlog - The order backlog reached a record $184.4 million, up 26% from $146.3 million a year earlier, indicating strong market demand [13]. Acquisition Strategy - The acquisition of Nu Aire, Inc. was completed on Nov. 1, 2024, aimed at enhancing the product portfolio and expanding market presence [15]. - Acquisition-related expenses of $2.3 million were recorded, viewed as a long-term investment in growth [15][16].

Financial Performance - Sales for the second quarter of fiscal year 2025 were $47,764,000, a decrease of 5.3% compared to $50,436,000 in the prior year quarter[2]. - Pre-tax earnings for the quarter were $3,931,000, down 18.9% from $4,845,000 in the prior year quarter[2]. - Domestic sales increased by 6.5% to $36,409,000 from $34,185,000 in the prior year quarter, with net earnings of $4,524,000 compared to $3,054,000[3]. - International sales decreased by 30.1% to $11,355,000 from $16,251,000 in the prior year quarter, with net earnings of $356,000 compared to $525,000[4]. - Diluted earnings per share increased to $1.01 from $0.93 in the prior year quarter[2]. - Net earnings attributable to Kewaunee Scientific Corporation for the three months ended October 31, 2024, were $3,008 million, an increase of 10.1% from $2,732 million in 2023[19]. - Basic net earnings per share for the three months ended October 31, 2024, were $1.05, compared to $0.94 in the same period of 2023[19]. - The company reported a net sales figure of $96,157 million for the six months ended October 31, 2024, down from $100,275 million in 2023, reflecting a decrease of 4.2%[19]. - Profit before income taxes for the six months ended October 31, 2024, was $6,361 million, down from $8,257 million in 2023, a decrease of 23%[19]. Operational Metrics - The company's order backlog reached a historically high level of $184.4 million on October 31, 2024, compared to $146.3 million on October 31, 2023[2]. - Gross profit for the three months ended October 31, 2024, was $13,952 million, representing a gross margin of 29.2%, compared to $13,468 million in 2023[19]. - Operating profit decreased to $4,434 million for the three months ended October 31, 2024, down 13.2% from $5,109 million in 2023[19]. - Operating expenses increased to $19,431 million for the six months ended October 31, 2024, compared to $16,465 million in 2023, marking a rise of 17.9%[19]. Corporate Developments - The corporate segment reported a pre-tax net loss of $2,444,000, compared to a loss of $1,243,000 in the prior year quarter, primarily due to increased professional service fees related to the acquisition of Nu Aire, Inc.[5]. - The company announced the acquisition of Nu Aire, Inc. on November 1, 2024, which will enhance its capabilities in laboratory furnishings[8]. - The company incurred professional fees related to the acquisition of Nu Aire, impacting adjusted net earnings and adjusted net earnings per share[12]. - Kewaunee Scientific Corporation is focused on expanding its market presence through strategic acquisitions and enhancing its product offerings in laboratory and healthcare environments[14]. Financial Position - Total cash on hand was $29,664,000 as of October 31, 2024, up from $25,938,000 on April 30, 2024[6]. - The debt-to-equity ratio improved to 0.59-to-1 on October 31, 2024, compared to 0.70-to-1 on April 30, 2024[7]. - Total assets decreased slightly to $134,478 million from $134,766 million[21]. - Cash and cash equivalents increased to $25,963 million from $23,267 million[21]. - Total current liabilities decreased to $36,471 million from $40,780 million[21]. - Total liabilities decreased to $73,821 million from $78,557 million[21]. - Stockholders' equity increased to $60,657 million from $56,209 million[21]. - Accounts payable decreased to $21,458 million from $23,262 million[21]. - Inventories decreased to $18,659 million from $20,679 million[21]. - Restricted cash increased to $3,701 million from $2,671 million[21]. - Current portion of lease obligations remained stable at $2,221 million compared to $2,234 million[21]. - Non-controlling interest decreased to $1,329 million from $1,449 million[21].

Core Insights - Kewaunee Scientific Corporation reported a decrease in sales for the second quarter of fiscal year 2025, with total sales of $47.76 million, down 5.3% from $50.44 million in the same quarter last year [2] - The company experienced a decline in pre-tax earnings, which fell by 18.9% to $3.93 million compared to $4.85 million in the prior year quarter, while net earnings increased to $3.01 million from $2.73 million [2][9] - The order backlog reached a record high of $184.4 million as of October 31, 2024, compared to $146.3 million a year earlier, indicating strong future demand [3] Financial Performance - Domestic sales increased by 6.5% to $36.41 million, driven by higher product demand, while net earnings for the domestic segment rose to $4.52 million from $3.05 million [4] - International sales saw a significant decline of 30.1%, totaling $11.36 million, attributed to construction site delays in India, impacting delivery schedules [5] - The corporate segment reported a pre-tax net loss of $2.44 million, worsening from a loss of $1.24 million in the prior year, primarily due to increased professional service fees related to the acquisition of Nu Aire, Inc. [6] Cash and Debt Position - The company had total cash on hand of $29.66 million as of October 31, 2024, an increase from $25.94 million on April 30, 2024 [7] - Short-term debt decreased to $805,000 from $3.10 million, while long-term debt slightly decreased to $28.05 million from $28.48 million [8] - The debt-to-equity ratio improved to 0.59-to-1 from 0.70-to-1, indicating a stronger balance sheet [8] Strategic Developments - The acquisition of Nu Aire, Inc. was completed on November 1, 2024, which is expected to enhance Kewaunee's capabilities in laboratory furnishings and expand its market reach [9][14] - The company incurred $2.3 million in expenses related to the acquisition during the current fiscal year, which will impact future financial results [9][12] - Kewaunee's management expressed confidence in the company's backlog and market position, anticipating a strong performance in the upcoming fiscal year [9]

STATESVILLE, N.C., Nov. 27, 2024 /PRNewswire/ -- Kewaunee Scientific Corporation (NASDAQ: KEQU) today announced that the Company plans to release its second quarter fiscal year 2025 financial results on Wednesday, December 11, 2024 after the close of trading. This information will be available on the Company's website www.kewaunee.com after the release.About Nu AireFounded in 1971 and based in Minneapolis, the Company is a leading manufacturer of equipment for a diverse range of laboratory and pharmacy envi ...

STATESVILLE, N.C., Nov. 1, 2024 /PRNewswire/ -- Kewaunee Scientific Corporation (NASDAQ: KEQU)Kewaunee Scientific Corporation ("Kewaunee"), a leader in laboratory furniture and technical product design and manufacturing, today announced the successful acquisition of Nu Aire, a Minneapolis-based company, for $55 million, subject to certain adjustments for debt, cash, transaction expenses, and net working capital. Nu Aire is renowned for its manufacturing of biological safety cabinets, airflow products, CO2 i ...

Zacks Investment Research has recently initiated coverage of Kewaunee Scientific Corporation (KEQU) with a "Neutral" recommendation, highlighting the company's strong order backlog and stable domestic performance while acknowledging ongoing challenges in its international operations and rising costs. Kewaunee Scientific boasts a solid order backlog, reaching $159.4 million as of July 31, 2024. This growth in the backlog reflects continued demand, providing strong visibility into future revenues. The company ...

Sales Performance - Sales for the quarter were $48,393,000, a decrease of 2.9% from $49,839,000 in the comparable period of the prior year[53]. - International sales decreased by 10.7% to $12,870,000 compared to $14,419,000 in the prior year due to customer construction site delays in India[53]. Profitability - The gross profit margin increased to 25.8% for the three months ended July 31, 2024, up from 23.9% in the comparable quarter of the prior year[54]. - Net earnings were $2,193,000, or $0.74 per diluted share, down from $2,474,000, or $0.86 per diluted share, in the prior year[57]. Operating Expenses - Operating expenses rose to $9,913,000, or 20.5% of sales, compared to $8,106,000, or 16.3% of sales, in the prior year[55]. Taxation - The effective income tax rate decreased to 7.9% for the three months ended July 31, 2024, from 26.3% in the prior year, influenced by a discrete tax benefit of $421,000[56]. Order Backlog - The Company's order backlog increased to $159.4 million at July 31, 2024, compared to $140.8 million at July 31, 2023[53]. Working Capital - Working capital was $56,012,000 at July 31, 2024, compared to $56,037,000 at April 30, 2024, with a current ratio of 2.5-to-1.0[58]. - The Company used cash of $794,000 during the three months ended July 31, 2024, primarily due to decreases in accounts payable and accrued expenses[59]. Strategic Focus - The Company continues to focus on supporting its dealers and distribution channel partners domestically while providing turnkey solutions in international markets[61].

Kewaunee Scientific Corporation (KEQU) reported mixed results for first-quarter fiscal 2025, with both earnings per share (EPS) and sales declining year over year. The company faced headwinds from delayed international shipments, particularly in India, which weighed on its overall performance. However, domestic operations were stable in the quarter under review, and a growing order backlog suggests the potential for recovery in the coming quarters. Rising costs, driven by higher professional fees, also impa ...

Kewaunee Scientific Reports Results for First Quarter of Fiscal Year 2025 Exchange: NASDAQ (KEQU) Contact: Donald T. Gardner III 704/871-3274 STATESVILLE, N.C. September 11, 2024 – PRNewswire / Kewaunee Scientific Corporation (NASDAQ: KEQU) today announced results for its first quarter ended July 31, 2024. Fiscal Year 2025 First Quarter Results: Sales during the first quarter of fiscal year 2025 were $48,393,000, a decrease of 2.9% compared to sales of $49,839,000 from the prior year's first quarter. Pre-ta ...

STATESVILLE, N.C., Sept. 11, 2024 /PRNewswire/ -- Kewaunee Scientific Corporation (NASDAQ: KEQU) today announced results for its first quarter ended July 31, 2024. Fiscal Year 2025 First Quarter Results: Sales during the first quarter of fiscal year 2025 were $48,393,000, a decrease of 2.9% compared to sales of $49,839,000 from the prior year's first quarter. Pre-tax earnings for the quarter were $2,430,000 compared to $3,412,000 for the prior year quarter, a decrease of 28.8%. Net earnings were $2,193,000 ...