Kewaunee Scientific (KEQU) - 2023 Q4 - Annual Report

Financial Performance - Sales for fiscal year 2023 were $219.5 million, an increase of 30% compared to fiscal year 2022 sales of $168.9 million[84]. - Net earnings for fiscal year 2023 were $738,000, or $0.25 per diluted share, compared to a net loss of $6.1 million, or $2.20 per diluted share, in fiscal year 2022[94]. - The company reported net earnings of $1.359 million for fiscal year 2023, a turnaround from a net loss of $6.003 million in the previous year[118]. - Revenues from external customers for fiscal year 2023 totaled $219,494,000, an increase from $168,872,000 in fiscal year 2022, representing a growth of 30.00%[222]. - The net earnings attributable to Kewaunee Scientific Corporation for fiscal year 2023 were $738,000, compared to a loss of $6,126,000 in fiscal year 2022[222]. Segment Performance - Domestic Segment sales increased by 15.7% to $146.7 million in fiscal year 2023, up from $126.8 million in fiscal year 2022[84]. - International Segment sales surged by 73.2% to $72.8 million in fiscal year 2023, compared to $42.0 million in fiscal year 2022, driven by large project deliveries in India, Asia, and Africa[84]. - The Domestic segment generated revenues of $146,716,000 in fiscal year 2023, up from $126,848,000 in fiscal year 2022, marking a 15.67% increase[222]. - The International segment's revenues rose significantly from $42,024,000 in fiscal year 2022 to $72,778,000 in fiscal year 2023, an increase of 73.60%[222]. Profitability and Margins - Gross profit margin improved to 16.2% in fiscal year 2023 from 14.3% in fiscal year 2022, attributed to higher International Segment sales[86]. - Gross profit for fiscal year 2023 was $35.588 million, compared to $24.220 million in 2022, indicating a gross margin improvement[118]. - Operating earnings for fiscal year 2023 were $5.364 million, a significant recovery from an operating loss of $2.608 million in 2022[118]. Expenses and Costs - Operating expenses rose to $30.2 million in fiscal year 2023 from $26.8 million in fiscal year 2022, representing 13.8% of sales compared to 15.9% in the prior year[87]. - The company incurred operating expenses of $32,000 related to the closure of its China subsidiary in fiscal year 2023, offset by a recovery of bad debt collections of $51,000[223]. - Advertising costs increased to $226,000 in 2023 from $175,000 in 2022, marking a rise of approximately 29.1%[154]. Cash Flow and Capital Expenditures - Capital expenditures increased to $4.1 million in fiscal year 2023 from $1.9 million in fiscal year 2022, with anticipated expenditures of approximately $4.4 million for fiscal year 2024[101][102]. - Total cash, cash equivalents, and restricted cash at the end of 2023 amounted to $13,815,000, up from $6,894,000 in 2022, reflecting a year-over-year increase of 100%[131]. - Cash flows from operating activities resulted in a net cash outflow of $3,790,000 in 2023, compared to an outflow of $7,885,000 in 2022, indicating improved operational efficiency[126]. Assets and Liabilities - Total assets as of April 30, 2023, were $118.898 million, slightly up from $118.773 million in 2022[125]. - The company’s total stockholders' equity increased to $38.485 million as of April 30, 2023, compared to $36.180 million in 2022[125]. - The order backlog was $147.9 million as of April 30, 2023, down from $173.9 million a year earlier, primarily due to the completion of the Dangote Oil project[85]. Taxation - The effective tax rate for fiscal year 2023 was 69.8%, impacted by changes in the valuation allowance related to research expenditures[91]. - Total current tax expense decreased from $3,397,000 in 2022 to $2,624,000 in 2023, a reduction of approximately 22.7%[193]. - Net income tax expense for 2023 was $3,139,000, down from $3,518,000 in 2022, reflecting a decrease of about 10.8%[195]. Research and Development - The Company recognized research and experimentation expenditures of $1,012,000 for the fiscal year ended April 30, 2023, compared to $990,000 in 2022, reflecting an increase of about 2.2%[153]. Stock and Compensation - The Company granted 87,969 RSUs in fiscal year 2023, an increase from 67,750 RSUs granted in fiscal year 2022, representing a growth of approximately 29.8%[157]. - The number of outstanding RSUs at the end of 2023 was 159,640, up from 144,827 in 2022, an increase of about 10.2%[201]. - The Company recorded stock-based compensation expense of $845,000 in 2023, compared to $701,000 in 2022, marking an increase of approximately 20.5%[199].