Financial Performance - Sales for the third quarter of fiscal year 2025 were $67,167,000, a 43.6% increase from $46,778,000 in the prior year quarter[3] - Pre-tax earnings decreased by 63.7% to $1,275,000 compared to $3,515,000 in the prior year quarter[3] - Adjusted pre-tax earnings for the quarter were $3,789,000, an increase of 7.8% from $3,515,000 in the prior year quarter[4] - Kewaunee Scientific reported net sales of $67.167 million for the three months ended January 31, 2025, a 43.5% increase from $46.778 million in the same period of 2024[25] - Gross profit for the three months ended January 31, 2025, was $18.379 million, representing a 53% increase compared to $12.029 million in the prior year[25] - The company’s net earnings attributable to Kewaunee Scientific Corporation for the three months ended January 31, 2025, were $1.354 million, down 46.2% from $2.521 million in the same period of 2024[25] - Kewaunee Scientific's diluted earnings per share for the three months ended January 31, 2025, were $0.45, down from $0.85 in the same period of 2024[25] Sales Breakdown - Domestic sales increased by 63.6% to $51,976,000 from $31,774,000 in the prior year quarter[7] - International sales saw a modest increase of 1.2% to $15,191,000 compared to $15,004,000 in the prior year quarter[8] Assets and Liabilities - Total assets increased to $189.148 million as of January 31, 2025, compared to $134.766 million as of April 30, 2024, reflecting a growth of 40.4%[27] - Kewaunee Scientific's total liabilities rose to $127.027 million as of January 31, 2025, compared to $78.557 million as of April 30, 2024, marking a 61.7% increase[27] - Long-term debt increased to $65,819,000 from $28,479,000 on April 30, 2024, resulting in a debt-to-equity ratio of 1.29-to-1[11] Cash Flow - Total cash on hand decreased to $12,335,000 from $25,938,000 on April 30, 2024[10] - The company’s cash and cash equivalents decreased to $9.454 million as of January 31, 2025, from $23.267 million as of April 30, 2024[27] Strategic Initiatives - The acquisition of Nu Aire, completed on November 1, 2024, significantly impacted financial results, with $2,514,000 affecting pre-tax earnings[4] - The acquisition of Nu Aire is expected to enhance Kewaunee's product offerings in laboratory equipment, including biological safety cabinets and CO2 incubators[21] - Kewaunee's strategic focus includes investments in manufacturing assets and strengthening dealer relationships to drive future growth[12] Operational Challenges - Operating expenses for the three months ended January 31, 2025, were $16.129 million, significantly higher than $8.223 million in the same period of 2024, indicating a 96.5% increase[25] - The company anticipates potential risks from competitive conditions and supply chain disruptions affecting future performance[23] Order Backlog - The company's order backlog was $221.6 million, up from $152.3 million on January 31, 2024[5]
Kewaunee Scientific (KEQU) - 2025 Q3 - Quarterly Results