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 (KEQU) - 2025 Q2 - Quarterly Results