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 [3] - 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 [3] - Kewaunee's corporate headquarters are located in Statesville, North Carolina, with additional sales offices in the United States, India, Saudi Arabia, and Singapore [4] Financial Information - Kewaunee Scientific Corporation plans to release its second quarter fiscal year 2025 financial results on December 11, 2024, after the close of trading [1] Industry Position - Kewaunee Scientific operates in a competitive market for laboratory and healthcare furniture, with a focus on safety and quality across various laboratory environments [2] - The company is positioned to benefit from the growing demand for laboratory equipment in life sciences research, clinical settings, biotech, and pharmaceutical R&D [2]

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].

Core Viewpoint - Zacks Investment Research has initiated coverage of Kewaunee Scientific Corporation (KEQU) with a "Neutral" recommendation, emphasizing the company's strong order backlog and stable domestic performance while recognizing challenges in international operations and rising costs [1] Group 1: Company Performance - Kewaunee Scientific has a solid order backlog of $159.4 million as of July 31, 2024, indicating strong demand and visibility into future revenues [2] - Domestic revenues have increased slightly by 0.3% year over year, with net earnings rising to $2.9 million, reflecting resilient demand across core sectors [2] - Despite a 2.9% decline in sales during the first quarter of fiscal 2025, effective cost management has led to a gross profit increase to $12.5 million, showcasing the company's ability to control costs [3] Group 2: Market Opportunities - The global laboratory furniture market is projected to grow at a compound annual growth rate of 6.8%, reaching $3.6 billion by 2027, providing a favorable industry landscape for Kewaunee [4] - Kewaunee's extensive product portfolio, including steel and wood casework, fume hoods, and modular systems, aligns well with the rising demand for laboratory infrastructure across various sectors [4] Group 3: Challenges and Risks - The international segment has faced challenges, with a 10.7% drop in sales attributed to construction delays in India, alongside rising operating expenses and a 28.8% decline in pre-tax earnings [5] - The company faces significant competition in the laboratory furniture market, which could impact its ability to maintain market share and profitability [6] - Kewaunee's long-term debt and high financing costs raise concerns about its financial flexibility moving forward [5] Group 4: Valuation Insights - Kewaunee Scientific stock has outperformed its industry, sector, and the broader market over the past six months and the trailing 12 months, yet it is trading at a lower valuation relative to its peers, suggesting potential undervaluation [7] - The stock has historically shown a wide range of trading multiples, indicating volatility in its valuation [7]

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 ...

Core Viewpoint - Kewaunee Scientific Corporation reported a decline in sales and earnings for the first quarter of fiscal year 2025, but maintains a strong order backlog and positive outlook for future performance [2][9]. Financial Performance - Sales for the first quarter were $48,393,000, down 2.9% from $49,839,000 in the same quarter last year [2]. - Pre-tax earnings decreased by 28.8% to $2,430,000 compared to $3,412,000 in the prior year [2]. - Net earnings were $2,193,000, a decrease from $2,474,000 in the previous year [2]. - EBITDA for the quarter was $3,325,000, down from $4,305,000 in the prior year [2]. Segment Performance - **Domestic Segment**: - Sales increased slightly to $35,523,000, up 0.3% from $35,420,000 in the prior year [4]. - Net earnings rose to $2,871,000 from $2,711,000 [4]. - EBITDA improved to $4,738,000 compared to $4,578,000 in the previous year [4]. - **International Segment**: - Sales decreased by 10.7% to $12,870,000 from $14,419,000 [5]. - Net earnings were slightly lower at $463,000 compared to $469,000 [5]. - EBITDA increased to $696,000 from $670,000 [5]. - **Corporate Segment**: - Pre-tax net loss increased to $1,992,000 from $1,004,000 [6]. - Corporate segment EBITDA was ($2,109,000), worsening from ($943,000) in the prior year [6]. Order Backlog - The order backlog stood at $159.4 million as of July 31, 2024, up from $140.8 million a year earlier and $155.6 million as of April 30, 2024 [3]. Cash and Debt Position - Total cash on hand was $25,186,000, down from $25,938,000 on April 30, 2024 [7]. - Working capital increased to $56,012,000 from $49,291,000 a year ago [7]. - Short-term debt rose to $3,627,000 from $3,099,000 [8]. - Long-term debt was $28,293,000, slightly down from $28,479,000 [8]. - The debt-to-equity ratio was 0.68-to-1, improved from 0.70-to-1 [8]. Management Commentary - The CEO noted that the financial performance was solid despite challenges, particularly due to site delays in India affecting product shipments [9]. - The company remains optimistic about its backlog and quoting for new projects, indicating potential for a strong year ahead [9].

Core Insights - Kewaunee Scientific Corporation will participate in the 2024 Arablab Live tradeshow in Dubai from September 24-26, showcasing its leadership in laboratory, healthcare, and technical furniture products [1][2] Company Overview - Founded in 1906, Kewaunee Scientific Corporation specializes in the design, manufacture, and installation of laboratory, healthcare, and technical furniture products, including steel and wood casework, fume hoods, and biological safety cabinets [4] - The company's headquarters are located in Statesville, North Carolina, with sales offices in the United States, India, Saudi Arabia, and Singapore, and manufacturing facilities in Statesville and Bangalore, India [5] Event Participation - Kewaunee's executive and sales teams will be present at the tradeshow to engage with customers, dealer representatives, and other attendees, encouraging visitors to explore their booth in Hall 3, Stand 708 [2][3] - The company aims to connect with international partners and customers, sharing knowledge and demonstrating innovative solutions that enhance laboratory design and functionality [3]

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] - The corporate headquarters is located in Statesville, North Carolina, with sales offices in the United States, India, Saudi Arabia, and Singapore [3] Manufacturing and Operations - Kewaunee operates three manufacturing facilities in Statesville, serving both domestic and international markets, and one facility in Bangalore, India, catering to local, Asian, and African markets [3] - The company’s website is available at http://www.kewaunee.com [3] Financial Reporting - Kewaunee Scientific Corporation plans to release its first quarter fiscal year 2025 financial results on September 11, 2024, after the close of trading [1]

LOS ANGELES, Aug. 8, 2024 /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Kewaunee Scientific Corporation ("Kewaunee Scientific" or "the Company") (NASDAQ: KEQU) for violations of the securities laws. The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. If you are a shareholder who suffered a loss, click he ...

Sales Performance - Sales for fiscal year 2024 were $203.8 million, a decrease of 7.7% compared to fiscal year 2023 sales of $219.5 million[91]. - Domestic Segment sales for fiscal year 2024 were $137.2 million, a decrease of 6.5% from $146.7 million in fiscal year 2023[91]. - International Segment sales for fiscal year 2024 were $66.5 million, down 8.6% from $72.8 million in fiscal year 2023[91]. - For the fiscal year 2024, net sales were $203.755 million, a decrease of 7.2% from $219.494 million in 2023[127]. - Domestic revenue for 2024 was $137.238 million, down from $146.716 million in 2023, reflecting a decline of approximately 6.5%[179]. - International revenue for 2024 was $66.517 million, a decrease from $72.778 million in 2023, representing a decline of about 8.6%[179]. Profitability - Gross profit margin increased to 25.5% in fiscal year 2024 from 16.2% in fiscal year 2023, driven by improved manufacturing productivity and cost containment[93]. - Gross profit for fiscal year 2024 was $52.051 million, representing a gross margin of 25.6%, compared to $35.588 million in 2023[127]. - Operating earnings increased significantly to $18.281 million in 2024, up from $5.364 million in 2023[127]. - Net earnings for fiscal year 2024 were $18.8 million, or $6.38 per diluted share, compared to $738,000, or $0.25 per diluted share, in fiscal year 2023[101]. - Net earnings attributable to Kewaunee Scientific Corporation rose to $18.753 million in 2024, compared to $738,000 in 2023, marking a substantial increase[127]. - Basic net earnings per share increased to $6.51 in 2024 from $0.26 in 2023[127]. - Net earnings for Kewaunee Scientific Corporation increased significantly to $19,057,000 in 2024 from $1,359,000 in 2023, representing a growth of approximately 1,302%[136]. Expenses and Costs - Operating expenses rose to $33.8 million in fiscal year 2024, representing 16.6% of sales, compared to $30.2 million or 13.8% of sales in fiscal year 2023[94]. - Research and experimentation expenditures were $920,000 in 2024, down from $1,012,000 in 2023, a reduction of approximately 9.1%[161]. - Advertising costs increased to $336,000 in 2024 from $226,000 in 2023, representing an increase of about 48.8%[162]. - Total net periodic pension expense plus special events for 2024 was $4.2 million, significantly higher than $71,000 in 2023 due to the effect of settlement[218]. Cash Flow and Working Capital - Cash and cash equivalents increased to $23.267 million as of April 30, 2024, compared to $8.078 million in 2023[134]. - Cash provided by operating activities was $19,564,000 in 2024, a turnaround from a cash used of $(3,790,000) in 2023[136]. - Working capital increased to $56.0 million at April 30, 2024, from $47.9 million at April 30, 2023, with a current ratio of 2.4-to-1.0[109]. - The company reported a total cash, cash equivalents, and restricted cash of $25,938,000 at the end of 2024, up from $13,815,000 in 2023, indicating a 88% increase[141]. Assets and Liabilities - Total assets grew to $134.766 million in 2024, up from $118.898 million in 2023[134]. - Total stockholders' equity increased to $56.209 million in 2024, compared to $38.485 million in 2023[134]. - The carrying value of the financing liability related to the Sale-Leaseback Arrangement was $28,133,000 as of April 30, 2024, down from $28,774,000 in 2023[191]. - The Company had $3,000,000 outstanding under the Revolving Credit Facility as of April 30, 2024, with a remaining borrowing capacity of $11,587,000, compared to $3,548,000 and $10,286,000 respectively in the previous year[185]. Taxation - The effective tax rate for fiscal year 2024 was 45.3%, benefiting from a reduction in the Domestic valuation allowance[98]. - The net income tax benefit for the year ended April 30, 2024 was $(5,938,000), a decrease from a tax expense of $3,139,000 in 2023[197]. - The total deferred tax assets decreased from $14,078,000 in 2023 to $12,671,000 in 2024, while deferred tax liabilities decreased from $6,453,000 to $5,562,000[198]. Stock and Compensation - The company granted 117,747 RSUs in 2024, compared to 87,969 RSUs in 2023, indicating an increase in stock-based compensation[165]. - The Company recorded stock-based compensation expense of $1,018,000 for fiscal year 2024, compared to $845,000 in fiscal year 2023, with a deferred income tax benefit of $223,000 and $199,000 respectively[202]. - The number of stock options outstanding at the end of fiscal year 2024 was 24,700, with a weighted average exercise price of $20.05[205]. Legal and Regulatory Matters - The Company is involved in certain claims and legal proceedings, which management believes will not have a material adverse effect on its financial condition[215]. - The Company has no unrecognized tax benefits and is generally no longer subject to federal tax examinations for years prior to fiscal year 2020[200]. Future Outlook - The Company expects to recognize approximately 100% of the contract liability balance of $4,374,000 as revenue during fiscal year 2025[181]. - Future cash payments related to the financing liability total $41,986,000, with $1,970,000 due in 2025[194]. - Future minimum lease payments total $9,802,000 for operating leases, with a weighted average remaining lease term of 4.2 years[214].