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 (KEQU) - 2025 Q1 - Quarterly Report