Kewaunee Scientific (US:KEQU)2024-06-28 15:47Sales 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].