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Kewaunee Scientific Reports Results for Third Quarter of Fiscal Year 2025
Prnewswire· 2025-03-12 20:16
Core Insights - Kewaunee Scientific Corporation reported a strong sales increase of 43.6% in Q3 FY2025, reaching $67.17 million compared to $46.78 million in the same quarter last year [2] - Despite the sales growth, pre-tax earnings decreased by 63.7% to $1.28 million, and net earnings fell to $1.35 million from $2.52 million year-over-year [2][4] - The company completed the acquisition of Nu Aire, which significantly impacted financial results due to associated costs and integration efforts [3][6] Financial Performance - Sales for Q3 FY2025 were $67.17 million, a 43.6% increase from $46.78 million in Q3 FY2024 [2] - Pre-tax earnings were $1.28 million, down 63.7% from $3.52 million in the prior year [2] - Net earnings decreased to $1.35 million from $2.52 million year-over-year [2] - EBITDA for the quarter was $3.73 million, compared to $4.41 million in the prior year [2] Adjusted Financial Metrics - After adjusting for acquisition-related costs, adjusted pre-tax earnings were $3.79 million, up 7.8% from $3.52 million in the prior year [4] - Adjusted net earnings were $3.26 million compared to $2.52 million in the prior year [4] - Adjusted EBITDA for the quarter was $5.73 million, an increase from $4.41 million in the prior year [4] Segment Performance - Domestic sales increased by 63.6% to $51.98 million, with net earnings of $2.88 million compared to $2.63 million in the prior year [7] - International sales saw a modest increase of 1.2% to $15.19 million, but net earnings fell to $476,000 from $923,000 due to customer site delays [8] - The corporate segment reported a pre-tax net loss of $3.03 million, worsening from a loss of $1.07 million in the prior year [9] Order Backlog and Strategic Initiatives - The company's order backlog reached $221.6 million, up from $152.3 million a year ago, indicating strong demand [5][13] - The acquisition of Nu Aire is expected to enhance Kewaunee's product offerings and market position, particularly in the domestic segment [6][12] - Kewaunee emphasizes investments in manufacturing and strengthening dealer relationships to drive growth [12] Cash and Debt Position - Total cash on hand was $12.34 million, down from $25.94 million at the end of April 2024 [10] - Short-term debt decreased to $1.13 million, while long-term debt increased significantly to $65.82 million, reflecting the impact of the Nu Aire acquisition [11] Management Commentary - The CEO highlighted the company's operational performance and strategic focus on manufacturing investments and market leadership [12] - The company is committed to delivering strong results for the remainder of FY2025, with a focus on operational excellence and customer success [12][13]
Kewaunee Scientific to Report Results for Third Quarter Fiscal Year 2025
Prnewswire· 2025-02-26 22:21
Company Overview - Kewaunee Scientific Corporation, founded in 1906, is a global leader in the design, manufacture, and installation of laboratory, healthcare, and technical furniture products [2] - The company's product offerings include steel and wood casework, fume hoods, adaptable modular systems, moveable workstations, stand-alone benches, biological safety cabinets, and epoxy resin work surfaces and sinks [2] - Kewaunee's corporate headquarters is located in Statesville, North Carolina, with sales offices in the United States, India, Saudi Arabia, and Singapore [2] - The company operates three manufacturing facilities in Statesville and one in Bangalore, India, serving both domestic and international markets [2] Recent Developments - Kewaunee Scientific announced plans to release its third quarter fiscal year 2025 financial results on March 12, 2025, after the close of trading [1] - The newly acquired subsidiary, Nu Aire, specializes in manufacturing biological safety cabinets, CO2 incubators, ultralow freezers, and other essential laboratory products [3] - Nu Aire, founded in 1971, has its headquarters and manufacturing facilities in Plymouth, Minnesota, with additional capabilities in Long Lake, Minnesota, and a warehouse partnership in the Netherlands [3]
Kewaunee Scientific: Growth Has Been Priced In After Q2 2025 Report
Seeking Alpha· 2024-12-16 05:43
Group 1 - The article emphasizes the importance of investing in quality companies at reasonable valuations, focusing on long-term fundamentals that drive share prices [1] - The preferred investment approach is quality-growth, targeting a return of approximately 15% over the next five years with conservative assumptions to ensure a margin of safety [1] - Key characteristics of a quality company include sustained top-line growth, a profitable bottom line, a healthy balance sheet, free cash flow generation, high return on capital employed (ROCE), and an attractive potential market [1]
Kewaunee Scientific (KEQU) - 2025 Q2 - Quarterly Report
2024-12-13 14:54
Sales Performance - Sales for the quarter were $47,764,000, a decrease of 3.3% from $50,436,000 in the comparable period of the prior year[86]. - Domestic sales increased by 6.5% to $36,409,000, while international sales decreased by 30.1% to $11,355,000 due to construction site delays in India[86]. Order Backlog - The Company's order backlog was $184.4 million at October 31, 2024, up from $146.3 million at October 31, 2023[89]. Profitability - Gross profit margin for the three months ended October 31, 2024 was 29.2%, an increase from 26.7% in the prior year[90]. - Net earnings for the three months ended October 31, 2024 were $3,008,000, or $1.01 per diluted share, compared to $2,732,000, or $0.93 per diluted share in the prior year[95]. Operating Expenses - Operating expenses for the three months ended October 31, 2024 were $9,518,000, or 19.9% of sales, compared to $8,359,000, or 16.6% of sales in the prior year[91]. Tax Rate - The effective income tax rate for the three months ended October 31, 2024 was 23.3%, down from 41.6% in the prior year[93]. Working Capital - The Company had working capital of $59,965,000 at October 31, 2024, compared to $56,037,000 at April 30, 2024[97]. Acquisition - The Company completed the acquisition of Nu Aire for $55.0 million, enhancing its capabilities in laboratory furnishings[82]. - The Company continues to focus on expanding its capabilities and presence domestically following the acquisition of Nu Aire[101].
Kewaunee Scientific's Q2 Earnings Rise Y/Y Despite Sales Decline
ZACKS· 2024-12-12 14:56
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].
Kewaunee Scientific (KEQU) - 2025 Q2 - Quarterly Results
2024-12-11 21:11
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].
Kewaunee Scientific Reports Results for Second Quarter of Fiscal Year 2025
Prnewswire· 2024-12-11 21:04
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]
Kewaunee Scientific to Report Results for Second Quarter Fiscal Year 2025
Prnewswire· 2024-11-27 21:05
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 ...
Kewaunee Scientific Corporation Completes Acquisition of Nu Aire
Prnewswire· 2024-11-01 12:01
Core Viewpoint - Kewaunee Scientific Corporation has successfully acquired Nu Aire for $55 million, enhancing its capabilities in laboratory furniture and technical product design and manufacturing [1][2]. Group 1: Acquisition Details - The acquisition price of Nu Aire is $55 million, subject to adjustments for debt, cash, transaction expenses, and net working capital [1]. - Nu Aire specializes in manufacturing biological safety cabinets, airflow products, CO2 incubators, ultralow freezers, and other laboratory equipment, serving various industries including life sciences, healthcare, and education [1][6]. Group 2: Strategic Benefits - This acquisition allows Kewaunee to combine its strengths with Nu Aire's established market presence and product portfolio, enhancing its ability to meet diverse laboratory needs [2]. - Nu Aire has distribution partners in regions where Kewaunee previously lacked presence, facilitating market expansion [2]. - The combined organization is expected to improve operating performance and customer relationships through complementary products and operational synergies [5]. Group 3: Market Position and Growth Potential - Nu Aire's product line is recognized for innovation and reliability, catering to recession-resistant sectors such as healthcare and life sciences, which are expected to continue thriving during economic slowdowns [3]. - With a diversified customer base, Nu Aire is not overly reliant on any single customer or market segment, positioning it well for global growth [3]. - Ongoing global investments in life sciences, healthcare, and education sectors provide favorable conditions for Nu Aire's continued expansion [3]. Group 4: Company Backgrounds - Kewaunee Scientific Corporation, founded in 1906, is a global leader in laboratory, healthcare, and technical furniture products [7]. - Nu Aire, founded in 1971, is the North American market leader in biological safety cabinets and airflow products, with a comprehensive range of laboratory equipment [6].
Zacks Initiates Coverage of Kewaunee Scientific With Neutral Recommendation
ZACKS· 2024-09-23 13:05
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 ...